Stage-1 [ ] Stage-2 [ ]...

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification R S P O

[ ]Stage-1 [ ] Stage-2 [] Surveillance [ ] Re-Certification

Plantation Management/Owner : PT. GERSINDO MINANG PLANTATION and PT. PERMATA HIJAU PASAMAN – Subsidiary of Wilmar International Limited.

Plantation Name : Gersindo Mill and Gersindo Estate (PT Gersindo Minang Plantation); PHP-1 Estate, PHP-2 Estate (PT. Permata Hijau Pasaman).

Location :

Jorong Tanjung Pangkal, Pasaman Subdistrict, Pasaman Barat District, Sumatera Barat Province, INDONESIA.

Certificate Code : MUTU-RSPO/038

Date of certificate issue : 21 April 2014

Date of expiry of certificate : 20 April 2019

Assessment Assessment

Date PT. Mutuagung Lestari

Auditor Review

by Approve

by

ST-2 February 25 – March 01th

2013

Oktovianus Rusmin, Ibnu Satria Prabudi,

Marsudi Eko Santoso Moh. Arif Yusni,

Panggading Hariara

Octo Nainggolan Taufik Margani

ASA-1 January 19 – 24th 2015

Oktovianus Rusmin, Moh. Arif Yusni,

Sofyan Hadi Lubis, Sapto Hadi

Winarno, Doni

Taufik Margani Tony Arifiarachman

Mutuagung Lestari • Raya Bogor Km 33,5 Number 19 • Cimanggis • Depok 16953• Indonesia

Telephone (+62) (21) 8740202 • Fax (+62) (21) 87740745/6

Email : [email protected] ● www.mutucertification.com

MUTU Certification • Accredited by Accreditation Services International on March 12th, 2014

Assessment Approved by MUTUAGUNG LESTARI on:

ASA-1 March 9th 2015

http://www.mutucertification.com/

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 ii Prepared by Mutuagung Lestari for Gersindo Minang Plantation – PT Gersindo Minang Plantation and Permata Hijau Pasaman (Subsidiary Wilmar International Limited)

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of PT Gersindo Minang Plantation dan PT Permata Hijau Pasaman Figure 2. Operational Map of PT Gersindo Minang Plantation dan PT Permata Hijau Pasaman

01 02

1.0 SCOPE of the SURVEILLANCE ASSESSMENT

1.1 Assessment Standard Used 03

1.2 Organization Information 03

1.3 Type of Assessment 03

1.4 Location of Plantations, Mill and Area Statement 03

1.5 Description of Supply Base 05

1.6 Planting Year and Cycles 05

1.7 Approximate Tonnage Certified 06

1.8 Other Certifications 06

1.9 Time-Bound Plan 06

2.0 ASSESSMENT PROCESS

2.1 Certification Body 09

2.2 Assessment Team 09

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 10

2.4 Stakeholder Consultation and Stakeholders Contacted 13

2.5 Determining Next Assessment 13

3.0 ASSESSMENT FINDINGS

3.1 3.2

Summary of Assessment Report of the RSPO Certification Summary of Assessment Report of Supply Chain Requirement

14 39

3.3 Conformity Checklist of Certificate and Logo Use 44

3.4 Summary of RSPO Partial Certification 45

3.5 Identification of Findings, Corrective Actions, Observations, Opportunity for Improvement and Noteworthy Positive Components

46

3.6 Summary of Arising Issues from Public, Management and Auditor Responses 48

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Signing of Assessment Findings 55

APPENDICES

1. List of Stakeholders Contacted in the RSPO Certification Process 56

2. Assessment Program 57

3. Glossary 59

PT MUTUAGUNG LESTARI

RSPO ASSESSMENT REPORT

SPO – 4006a.5 1 Prepared by Mutuagung Lestari for Gersindo Minang Plantation – PT Gersindo Minang Plantation and Permata Hijau Pasaman (Subsidiary Wilmar International Limited)

Figure 1. Location Map of PT Gersindo Minang Plantation and PT Permata Hijau Pasaman

PT MUTUAGUNG LESTARI


SPO – 4006a.5 2 Prepared by Mutuagung Lestari for Gersindo Minang Plantation – PT Gersindo Minang Plantation and Permata Hijau Pasaman (Subsidiary Wilmar International Limited)

Figure 2. Operational Map of PT Gersindo Minang Plantation and PT Permata Hijau Pasaman

PT. MUTUAGUNG LESTARI


SPO – 4006a.5 Page 3 Prepared by Mutuagung Lestari for Gersindo Minang Plantation – PT Gersindo Minang Plantation and Permata Hijau Pasaman (Subsidiary Wilmar International Limited)

1.0 SCOPE OF THE CERTIFICATION ASSESSMENT

1.1 Assessment Standard Used National Interpretation, RSPO Principles and Criteria (P&C) for Sustainable Palm Oil

Production, Republic of Indonesia - RSPO INA-NIWG, May 2008 and RSPO Supply Chain

Certification Standard November 2011 for CPO Mill.

1.2 Organization Information

1.2.1 Company name PT. GERSINDO MINANG PLANTATION and PT. PERMATA HIJAU PASAMAN - Subsidiary of Wilmar International Limited.

1.2.2 Contact person Simon Siburat

1.2.3 Company address and site address Office: Multivison Tower Lt. 15 Jl. Kuningan Mulya Blok B9, Kuningan, Jakarta 12980 – Indonesia. Estate & Mill: Jorong Tanjung Pangkal, Tanjung Pangkal Subdistrict, Pasaman Barat District, Sumatera Barat Province, INDONESIA.

1.2.4 Telephone (62-21) 461 6555

1.2.5 Fax (62-21) 461 6687

1.2.6 E-mail [email protected]

1.2.7 Web page address www.wilmar.co.id

1.2.8 Company status Penanaman Modal Asing (PMA)

1.2.9 Management Representative who completed the application for certification

Simon Siburat (Sustainability Controller Wilmar Group)

1.2.10 Registered as RSPO member 2-0017-05-000-00, tanggal 16 Agustus 2005

1.3 Type of Assessment

1.3.1

Scope of Assessment and Number of management unit

Palm Oil Mill and supply base 01 (one) palm oil mill unit (Gersindo Mill) with FFB from 03 (three) estate unit, i.e: Gersindo Estate (PT Gersido Minang Plantation), PHP-01 Estate and PHP-02 Estate (PT Permata Hijau Pasaman).

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate

PT GERSINDO MINANG PLANTATION and PT PERMATA HIJAU PASAMAN - Subsidiary of Wilmar International Limited.

1.4 Locations of Mill, Plantations and Area Statement

1.4.1 Location of Mill

Name of Mill Location

GPS

Latitude Longitude

Gersindo Minang Plantation

Jorong Tanjung Pangkal, Tanjung Tangkal Subdistrict, Pasaman Barat District, Sumatera Barat Province.

0˚ 07’ 31,4” LU 99˚ 43’ 10.07” BT

mailto:[email protected]

http://www.wilmar.co.id/




1.4.2 Location of Supply Base

Name of Supply Base Location

GPS

Latitude Longitude

GMP Estate (PT Gersindo Minang

Plantation)

Jorong Tanjung Pangkal, Tanjung Pangkal Subdistrict, Pasaman Barat District, Sumatera Barat Province.

0˚ 06’ 47,8” LU 99˚ 43’ 04,98” BT

PHP-I Estate (PT. Permata Hijau

Pasaman-I)

Nagari Sasak, Sasak Ranah Pasisia Subdistrict, Pasaman Barat District, Sumatera Barat Province

0˚ 00’ 39,04” LU 99˚ 44’ 15,57” BT

PHP-II Estate (PT. Permata Hijau

Pasaman-II)

Jorong Maligi, Sasak Subdistrict, Pasaman Barat District, Sumatera Barat Province

0˚ 06’ 47,7” LU 99˚ 37’ 48,09” BT

1.4.3 Tenure

State

- PT GMP 3,600 Ha

- PT PHP 2,261.40 Ha

Community - Ha

1.4.4

Ha

PT GMP PT PHP Total

Total area 3,600 2,261.40 5,861.40

Mature area 2,955.29 2,095.27 5,050.56

Immature area - - -

Mill 13.00 - 13.00

Emplashment & Infrastructure 135.66 84.85 220.51

Plantable 8.60 - 8.60

Nursery 3.78 0.47 4.25

Occupation 8.19 - 8.19

LC 101.87 80.81 182.68

HCV 54.64 - 54.64

* Source: Statement Area PT GMP & PHP

1.5 Description of Supply Base

1.5.1 Description of Mill

Name of Mill Capacity

(tonnes/ hour)

FFB Processed

(tonnes/ year)

CPO Palm Kernel

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Gersindo 60 320,781,992 59,191,146 18.45 16,445,358 5.13

TOTAL 320,781,992 59,191,146 18.45 16,445,358 5.13

Source: Mill Production Periode January - December 2014

1.5.2 Description of Certified Estate




Name of Estate(s) Total Area

(Ha)

Planted Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ha/ye

ar)

Supplied to Mill

FFB (tonnes/year)

%

PT GMP 3,600 2,955.29 71,621.38 24.23 67,973,180 94.91

PT PHP I 1,247 1,190.84 27,993.95 23.51 12,140,020 43.37

PT PHP II 1,014.4 904.43 25,309.93 27.98 24,071,340 94.89

TOTAL 5,861.40 5,050.56 124,925.26 24.73 104,130.54 83.35

Source: Estate Production Periode January - December 2014

1.5.3 FFB description from other source

Name of source(s) Member(s) Location

Supplied to Mill

FFB (tonnes/year)

%

Plasma (Non RSPO

Certified) PT PHP West Pasaman District 77,821.80 100

PT Sinar Siak Sakti (Non RSPO

Certified) - West Pasaman District 138,829.65 100

TOTAL 216,651.45 100

Source: Estate Production Periode January - December 2014

1.5.4 Product categories FFB / CPO / PK

1.6 Planting Year and Cycles

1.6.1 Age profile of planting year

Planting Year Ha

GMP PHP I PHP II Total (Ha)

1992 28.72 - - 28.72

1993 696.51 - - 696.51

1994 702.62 - - 702.62

1995 841.81 - - 841.81

1996 361.87 417.31 165.38 944.56

1997 231.02 539.81 678.23 1,449.06

1998 - 168.08 60.82 228.90

1999 6.15 65.64 - 71.79

2014 86.59 - - 86.59

TOTAL 2,955.29 1,190.84 904.43 5,050.56

1.6.2 New Planting area after January 2010 - Ha

1.6.3 Planting Cycle 1st Cycle




1.7 Approximate Tonnage Certified

1.7.1 Past Annual Claim Certified Product Previous Certificate Claim (tonnes/year)

Actual certified product (tonnes/year)

FFB Production 147,679 76,215.090

CPO Production 29,535.8 13,894.01

Palm Kernel (PK) Production 7,382.95 3,917.46

** Certificate Claim period 21 April 2014 s/d 20 April 2015 ** Actual Claim periode 21 April 2014 s/d 19 Januari 2015

1.7.2 Claim Certified of FFB

Name of Estate(s) Total Area

(Ha) Planted Area

(Ha) FFB

(tonnes/year) Yield

(tonnes/ha/year)

PT GMP 3,600 2,955.29 76,276,77 25,81

PT PHP I 1,247 1,190.84 29,813,56 25,04

PT PHP II 1,014.4 904.43 26,955,08 29,80

TOTAL 5,861.40 5,050.56 133.045,40 26,34

Source: Budget Mill Projection 2015

1.7.3 Claim Certified of Palm Product

Name of Mill Capacity

(tonnes/ hour)

FFB Processed

(tonnes/year)

CPO Palm Kernel

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Gersindo 60 133,045.40 26,609.08 20 6,984.88 5.25

TOTAL 60 133,045.40 26,609.08 20 6,984.88 5.25

Source: Budget Mill Projection 2015

1.8 Other Certifications

ISO 9001:2008 -

ISO 14001: 2004 -

OHSAS 18001:2007 -

ISCC -

Others

1.9 Time Bound Plan

1.9.1 Time Bound Plan for Other Management Units

No Nama Unit Manajemen Alamat Rencana Tata

Waktu Status

1 Sapi (1 + 2) Sandakan, Sabah, Malaysia 2008 Certified

2 Sabahmas Lahad Datu, Sabah, Malaysia 2008 Certified 3 Reka Halus Sandakan, Sabah, Malaysia 2008 Certified

4 Saremas (1 + 2) Miri Serawak, Malaysia 2008 Certified 5 Kaminsky Miri Serawak, Malaysia 2008 Certified

6 Suai Miri Serawak, Malaysia 2008 Certified




7 Segarmas Miri Serawak, Malaysia 2008 Certified

8 Terusan (1 + 2) Sandakan, Sabah, Malaysia 2009 Certified 9 Kiabau Sandakan, Sabah, Malaysia 2009 Certified

10 Ribubonus Sandakan, Sabah, Malaysia 2009 Certified

11 PT Perkebunan Milano (SDE, BSE & MBE)

North Sumatera 2009 Certified

12 PT Mustika Sembuluh Central Kalimantan 2009 Certified 13 PT Kencana Sawit Indonesia West Sumatera 2010 Certified

14 PT Kerry Sawit Indonesia Central Kalimantan 2010 Certified 15 PT Tania Selatan (BT & BB) South Sumatera 2010 Certified

16 Hibumas Sandakan, Sabah 2010 Certified 17 Sri Kamusan Sandakan, Sabah 2010 Certified

18 Sekar Imej Sandakan, Sabah 2010 Certified 19 Aktif Kukuh & Koperasi Sandakan, Sabah 2010 Certified

20 PT AMP Plantation West Sumatera 2011 Certified 21 PT Primatama Muliajaya West Sumatera 2011 Certified

22 PT ANI (Sambas) West Kalimantan 2012 Certified 23 PT Buluh Cawang Plantation South Sumatera 2012 Audited

24 PT Tania Selatan (Bambu Kuning)

South Sumatera 2012 Audited

25 PT Bumi Sawit Kencana Central Kalimantan 2012 Audited

26 PT Sarana Titian Permata Central Kalimantan 2012 Certified 27 PT Gersindo Minang Plantation West Sumatera 2014 Certified

28 PT Permata Hijau Pasaman West Sumatera 2014 Certified

29 PT Daya Labuhan Indah North Sumatera 2014 Certified

30 PT Milano (Cabang Dua Estate) North Sumatera 2014 Certified

31 PT Agro Palindo Sakti South Sumatera 2014 Audited

32 PT Mentaya Sawit Mas Central Kalimantan 2014 Audited 33 PT Musi Banyuasin Indah South Sumatera 2014 1st Stage Audit

34 PT Agronusa Investama Pahauman

West Kalimantan 2014 Planning

35 PT Murini Sam Sam Riau 2015 Planning 36 PT Sinarsiak Dianpermai Riau 2015 Planning

37 PT Bumi Pratama Khatulistiwa West Kalimantan 2015 Planning 38 BBPOP (Benso Plantation) Ghana 2015 Final Audit

39 PT Buluh Cawang Plantation West Kalimantan 2015 Planning 40 PT Pratama Prosentindo West Kalimantan 2016 Planning

41 PT Putra Indotropical West Kalimantan 2016 Planning 42 PT Agro Palindo Sakti West Kalimantan 2016 Planning

43 PT Daya Landak Plantation West Kalimantan 2016 Planning 44 PT Indoresins Putra Mandiri West Kalimantan 2016 Planning

45 PT Karunia Kencana Permaisejati

Central Kalimantan 2016 1st Stage Audit

46 PT Rimba Harapan Sakti Central Kalimantan 2016 1st Stage Audit

47 PT Agro Indah Persada 2 Bangko - Jambi 2016 Planning *latest update of TBP 2014 under WILMAR management

Wilmar International Limited has committed to make time arrangement for entire other unit under its management to implement P&C standard to achieve RSPO certificate and auditor team has considered the plan Wilmar management dealing with is in line with RSPO Certification System for Partial Certification. The plan development and follow up shall be verified and reported at the end of routine annual visitation.




1.9.2 Progress of Associated Smallholders and Outgrowers for Certifiable Standard

Other FFB supplier to PT GMP is: - Cooperative Agreement Letter between PT PHP with Rantau Pasaman Village Cooperative Unit (Sasak Village

Cooperative Unit) for establishing and managing palm oil estate in partnership scheme in Pasaman District, West Sumatera Province, number. 090/PHP-DIR/PK-III/97 & 004/KUD-SASAK/III/97 dated March 15th 1997.

- Cooperative Agreement Letter between PT PHP with Kapar Village Cooperative Unit for establishing and managing palm oil estate in partnership scheme in Pasaman District, West Sumatera Province, number. 020/PHP-DIR/PK-III/97 & 03/KUD-KAPAR/III/97, dated March 15th 1997.

According to TBP for the Associated Smallholder & Outgrower Wilmar, Plasma (PT PHP and GMP) shall be audit on 2016.




2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari Jl. Raya Bogor Km 33,5 No. 19, Cimanggis - Depok 16953 Telp. +62-21-8740202; Fax +62-21-87740745/46 Website: www.mutucertification.com Email : [email protected]

2.2 Assessment Team

ASA-01 1. Oktovianus Rusmin (Lead Auditor). Bachelor’s Degree in Social and Political Sciences Department of Anthropology. Specialistsin the field of Social and Cultural Social Impact and Conflict Resolution) and HCVF. Already participated in Forest Management Auditor Training (FSC Standard), ISO 14001, ISO 9001:2008, and Enviromental Management SystemTraining SVLK (wood legality) Auditor, Indonesian Sustainable Palm Oil (ISPO) and RSPO Lead Auditor Training. He was several times involved in the assessment of Sustainable Forest Management Certification (Standard LEI) and Gap Analysis Audit (FSC Standard). Had workedat the Center for studyof Anthropology University of Indonesia and SocialAdvisor at TropicalForest Trust (TFT) Indonesia. He was numerously involved in Social Impact Assessmentand HCV Identificationin Palm Oil Plantations and Natural Forest concessions. Have been approved as HCV assessor by RSPO for Social Discipline Specialist. In ASA-01 he conducted an assessment on Legality, HCV and Supply Chain Chain Aspects.

2. Moh. Arif Yusni (Auditor). A bachelor of Agriculture, majoring of Plant Pest and Diseases (Plant Protection). He has a working experience for 2 (two) years in oil palm Plantation Company in Indonesia. Trainings attended namely: Indonesian Sustainable Palm Oil (ISPO) Lead Auditor training course and Auditor/Lead auditor Management System Certification (ISO 9001-2008), Now he worked at Professional Certification Body. He has been several times following audit related tosustain able palm oil certification system as an auditor. In ASA-01 he conducted an assessment on SMK3 and Best Management Practices aspects.

3. Sofyan Hadi Lubis (Auditor). Master’s Program in Environmental and Natural Resource Management, Institutut

Pertanian Bogor (IPB) and Bachelor of Social Economic Agriculture, Gadjah Mada University (UGM). Participated in several environmental management workshops, climate change mitigation training and adaptation for agricultural productivity in Southeast Asia, Carbon Forum Asia Update and EIA. He has also been involved as a research team at the Centre for Research, Development and Climate Change Policy, Ministry of Forestry of Indonesia – Bogor and Research Team in cooperation program IPB – ETH Zurich Switzerland – NUS Singapore. He has followed Auditor training ISPO, ISO 9001-2008, Awareness RSPO, Green House Gass Calculator and High Conservation Value. Furthermore, he also worked as a staff environment in consulting firm. In ASA-01 he conducted an assessment on emission and pollution, waste management and Green House Gass aspect.

4. Doni (Auditor). Master's Program in Sociology Rural. Have been following the certification of Sustainable

Production forest management (PHPL) Ecolabel of Indonesia (LEI) in 2008 and Training Up-Grading at the Pusdiklat PHPL Forestry Bogor in 2010. Since 2003 has been a several times to audit certification of PHPL, among others: PT Bintuni Straits Bay Main Agro Mina Prop. West Papua in 2010 PT. ITCIKU Prop. In 2009, Kaltim Cooperative Meranti Grow Beautiful Prop. In 2008, PT Kaltim Memberamo Indan Agro Mandiri in 2008, PT Arara Abadi Prop. Riau in 2005, PT INHUTANI III (Nanga Pinoh) Kaltim, 2003. Since 2005-present work free lance in BAPPENAS, Ministry of Regional development is lagging behind (KPDT) and Ministry Director General Cipta Karya PU as an evaluation team. 2006-2007 working in JICA-UN-HABITAT and UNDP. On ASA-01 he conducted an assessment on transparancy of information, employment and social.

5. Sapto Hadi Winarno (Auditor). Scholar of Forest Product, Faculty of Forestry, Bogor Agriculture Institute. He

has work experience as air sensing photograph consultant since 1994 to 1997. He was working on company of plywood and he was appointed as IPK Manager of Palm Oil Company. He was also appointed as Company Operational Director of PMDN and PMA Manufacture Company on 1998 to 2005. He has certificates of assessor/ /auditor/lead auditor on Forest Management and Wood Assurance Certificate since 2005 to recently. He has


mailto:[email protected]




competence certificate for PHPL and VLK auditor. The professional experience he was dealing with was as the trainer of PHPL and SLK workshop for the Supervisor of Forest. He is now as professional consultant for forestry. In ASA-01 he conducted an assessment on Social and Environmental Impact Assessment and conservation aspect.

2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Figure of person days to implement assessment

ASA-01 Number of auditors : 5 persons Number of days for assesment at site : 5 days Number of working days for at site : 25 Working days

2.3.2 Detail process of assessment

ASA-01 The assessment was conducted by measuring the sufficiency of implementation with the consistency done by the PT GERSINDO MINANG PLANTATION and PT PERMATA HIJAU PASAMAN to the requirements of National Interpretation of the Republic of Indonesia from RSPO Principles and Criteria for Sustainable Palm Oil Production (RSPO INA-NIWG, May 2008 and/or Scheme Smallholders October 2009) and Supply Chain Requirement for CPO Mill. The assessment was conducted in three methods: (1) document review, aiming to observe the sufficiency of types or substances from required documents; (2) interview, aiming to obtain more detailed information and cross check the information; and (3) field observation, aiming to observe directly the sufficiency of implementation on site. Some opportunities for improvement of the results (ASA-1) delivered by the MUTU auditor to the management unit and the results are the subject will be verified at the next assessment phase (ASA-2). Improvement of findings from main assesment findings were observed by auditors at this (ASA-1) assessment. All information obtained was recorded in Check List of PT Mutuagung Lestari (MUTU) and part of ASA-1 The assessment program please find Appendix 2.

2.3.3 Locations of Assessment

ASA-01 Locations visited during the assessment are shown below: PT. Gersindo Minang Plantation Location 1. PT GMP POM. Observation on POM operational in each station. Conducting interview with the related workers in term of procedure awareness, training, wage, OHS, and procedure of complaint delivery. According to auditor team observation, hygine in each station is well maintained. Location 2. Land Aplication. According to the result of field observation in Division A Block K10, the block has been in accordance with the area allowed for effluent application and no effluent overflow over soil. Location 3. WWTP Pool. According to the result of field observation within GMP POM effluent plant, the effluent management has been well managed by concerning the principles of environment such as pool volume refers to the generated effluent volume, well functioning waste equipments such as mixer pond and flowmeter, no leakage and effluent overflow. According to the result of interview with WWTP officer, there is no complaint expressed by community yet in term of WWTP management. Location 4. Hazardous Waste Storage. According to the field observation to GMP POM Hazardous Waste Storage, GMP and PHP Estate, the location of hazardous waste has referring to the requirments applied on the permit such as correct coordinate point, it has Fire Extinguisher, First Aid Kit, Lable and Symbol. Furthermore, hazardous waste storage clerk has been equipped with PPE and has received routine medical check up. Location 5. Fiber and Shell. According to the result of field observation on GMP POM, the company has utilized shell and fiber as boiler fuel. Location 6. Water Treatment Plan. WTP is equipped with flow meter to measure water usage, Location of non-moving emission sampling, Boiler 1 N 00o 071’ 09,2” ; E 099o 42’ 08,2” and Boiler 2 N 00o 070’ 09,2” ; E 099o 43’ 08,3” and sampling point of air ambient in front of office N 00o 070’ 14,5” ; E 099o 43’ 13,5




Location 7. Monitoring Well. According to the result of field visit on Monitoring Well Number 1 – 3, the wells are in good condition and sampling was conducted by EHS staff regularely.

Location 8. Land Use Title Boundary Pol. According to field observation on BTS pole sampling BTS XXVIII, BTS XXVII, BTS XXVI, BTS XXV, BTS XVIII, BTS XIX, BTS XX, the poles are well maintained. Location 9. Fire Post. Facilities to handle fire such as water tank and tractor supported with water pump machine, hose, and nozzles are well functioned. Location 10. Diesel Fuel Tank. OHS Implementation such as hazardous materials symbol of flammable materials, dangerous, and environmentally dangerous, diesel fuel capacity, diesel fuel loading / unloading work instruction, rag, PPE and Fire Extinguisher. Location 11. Treatment of Cycle and Interrow in Block 46 Phase 2. Employees have used proper PPE such as helmet, gloves, and boots. Employees have well aware of the targeted and type of the controlled weed. Employees have been paid with proper wage refer to the minimum wage standard. Workers have received regularmedical check up. Location 12. Harvesting in Block 30 Phase 2. According to the field observation, the harvesting program has been conducted by referring to the proper SOP. Harvesters have aware of the applied safety procedure, harvesting basic, or the applied waging system. Location 13. Replanting Program in Block 35, 36, 37 and 39. According to the field observation, company was implementing zero-burning principle. Location 14. Subsidiency Pole of Block 39 Phase 2. According to the result of field observation, company has calculated peat soil subsidiency and has monitored the depth of underground water. Location 15. Housing Complex: Observation on G6 housing complex condition, environment sanitation, domestic waste management, waste management, water for bathing and domestic need. Auditor was interviewing the settler in term of housing complex, wage, medical service, complaint procedure implementation. Proper facilities. Company suggests the settler to plant flowers in front of the house. Location 16. Clinic: Observation and interview with medical assistants. The medical assistants have been Hyperkes certified, medical waste has been managed by referring to the regulations, proper medical facilities and drugs, well functioning medical equipments. Ready use ambulance for 24/7. Location 17. Daycare: Observation and interview. Proper daycare building, kids playing ground facilities need to be completed, proper sanitation. There are 2 baby sitters in daycare. Location 18. Chemical Waste. Observation and interview in term of warehouse condition and facility, hazardous materials symbol and label, PPE implementation, hazardous materials and first aid management, wage, housing complex facility, medical check up, complaint, and others. Location 19. POM Workshop. Observation and interview in term of management of hazardous materials and hazardous waste, first aid, wage, housing complex facility, medical check up, clean water, PPE availability, complaint and others. Location 20. Block 5 Sungai Batang Alin. Observation in Riparian area nearby boundary pole 12. There are signboard contains prohibition to harm the environment, riparian conservation and prohibition. The riparian is almost nor bordering the palm oil. 50 meter of the riparian is marked with yellow paint. Location 21. Block 5 near boundary pol 12. There are monitoring point for water biodiversity and water surface quality (upper threshold / PT PHP upstream). No permanent sign in form of monitoring point position on the position. Location 22. Block 24 location of monitoring point in Batang Alin River upstream. No permanenet sign in form of monitoring point on the position. Location 24. Chemical Warehouse, Chemicals is placed by referring the grouping result and there are Stock Card in each chemicals spot.

PT. Permata Hijau Pasaman

Location 25. Land Use Title Boundary Pol. According to field observation on BTS pole sampling BTS 02, BTS 03, BTS 06, BTS 07, BTS 18, BTS 19, BTS 22 and BPN 02. the poles are well maintained. Location 26. Fire Post. Facilities to handle fire such as water tank and tractor supported with water pump machine, hose, and nozzles are well functioned. Location 27. Diesel Fuel Tank. OHS Implementation such as hazardous materials symbol of flammable materials, dangerous, and environmentally dangerous, diesel fuel capacity, diesel fuel loading / unloading work instruction, rag, PPE and Fire Extinguisher.




Location 28. Treatment of Cycle and Interrow in Block 46 Phase 2. Employees have used proper PPE such as helmet, gloves, and boots. Employees have well aware of the targeted and type of the controlled weed. Employees have been paid with proper wage refer to the minimum wage standard. Workers have received regularmedical check up. Location 29. Harvesting in Block 11. According to the field observation, the harvesting program has been conducted by referring to the proper SOP. Harvesters have aware of the applied safety procedure, harvesting basic, or the applied waging system. Location 30. Replanting Program in Block J8; J10; J11 dan J12 . According to the field observation, company was implementing zero-burning principle and planting nuts as soil layer. Location 31. Barn Owl Box of Block 16. Auditor team was observing the implementation of rats control by using biological predator (Tyto Alba). According to the result of observation, ration of barn owl box provision has been conducted and improved by company. Location 32. Housing Complex: Observation on G10 housing complex condition, environment sanitation, domestic waste management, waste management, water for bathing and domestic need. Auditor was interviewing the settler in term of housing complex, wage, medical service, complaint procedure implementation. Proper facilities. Company suggests the settler to plant flowers in front of the house. Location 33. Landfill: Observation on location and waste hoarding technique. Landfill location is located for about 1 Km away from the housing complex. The organic and anorganic waste is separated. The anorganic waste is disposed to the hole with plastic-covered soil in order to avoid direct contact with soil. Location 34. First Aid: Observation and interview with medical assistants. The medical assistants have been Hyperkes certified, medical waste has been managed by referring to the regulations, proper medical facilities and drugs. Location 35. Daycare: Observation and interview. Proper daycare building, kids playing ground facilities need to be completed, proper sanitation. There are 2 baby sisters in daycare. Location 36. Hazardous Waste Storage. According to the field observation to GMP POM Hazardous Waste Storage, GMP and PHP Estate, the location of hazardous waste has referring to the requirments applied on the permit such as correct coordinate point, it has Fire Extinguisher, First Aid Kit, Lable and Symbol. Furthermore, hazardous waste storage officer has been equipped with PPE and has received routine medical check up. Location 37. Empty Fruit Bunch Application. According to the result of field observation Block 55-AB, Company has conducted empty fruit bunch application for 40 ton/ha and arranged for 1 layer on the interrow. Location 38. Replanting Area of Block 41 B and nearby, on the unplanted area and land clearing is conducted by

implementing push and fell principle. There is no specific water management. Block 37B, 37A, 35B have been

planted on October 2014.

Location 39. Conservation Area in Block 62, 65 and Block 76/75. There is management of information signboard,

and other signboard including prohibition signboard. Conservation area is undisturb.

Stakeholders West Pasaman District Environment Agency. Interview in term of waste management, environment permits, and environment issues and report in term of negative impact over environment caused by estate and mill operation. West Pasaman District Manpower, Social, and Transmigration Agency. Interview in term of OHS, Social Manpower and issues and reports from other parties in term of negative impacts over environment caused by estate and mill operation. West Pasaman District Plantation Agency. Interview in term of management and development of plantation, permits, management area, scheme smallholders and issues and reports from other parties in term of negative impact over environment caused by estate and mill operation. West Pasaman District National Land Agency Office. Interview in term of land of legality. Sikilang Village, West Pasaman District. Interview with community figures in term of negative and positive impact caused by PT GMP and PT PHP estate establishment. Tanjung Pangkal Village, West Pasaman District. Interview with community figures in term of negative and positive impact caused by PT GMP and PT PHP estate establishment. Kapa Community Representatives (Pucuk Adat Nagari Kapa & Head of Kapa Nagari Costum Kerapatan), interview in term of follow up of the objection over Decree of PT PHP 1 Land Use Title issued by West Pasaman District National Land Agency informed by costum representatives via RSPO grievance.




2.4 Stakeholder Consultation and Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process.

ASA-01 Summary of stakeholder consultation process Consultation of stakeholders for PT. Gersindo Minang Plantation dan PT. Permata Hijau Pasaman was held by:

- Public announcement in MUTU website (www.mutucertification.com) at 05 January 2015. - Visitation and interview with the stakeholders (Environment Agency, Manpower Agency, and National Land

Agency) at West Pasaman District, West Sumatera on January 20th 2015. - Visitation and interview with the stakeholders within the villages nearby estate area (Sikilang Village and

Tanjung Pangka Village) on January 20th 2015, and the interview by phone with Kapa community representative on March 13th 2015.

- Questionnair to NGO by email on January 16th 2015. Several good and bad advice are received by the auditor team and then it will be clarified as assessment consideration on ASA-2.

2.4.2 Stakeholder contacted

Please find appendix 1

2.5 Determining Next Assessment

The next visit (ASA-2) will be determined one year after this ASA-1 (January 2015).





3.0. ASSESSMENT RESULT 3.1. Summary of Assessment Report of the RSPO Certification

MUTUAGUNG LESTARI has conducted an assessment of Gersindo Minang Plantation POM – PT Gersindo Minang Plantation dan PT Permata Hijau Pasaman, WILMAR International Limited operation consisting of one (01) mill and three (03) oil palm estates.

During the assessment, there was zero (0) Nonconformities was assigned against Major Compliance Indicator; zero (0)

nonconformity was assigned against Minor Compliance Indicators; and one (01) nonconformance against supply chain

requirement for CPO mill and one (01) opportunity for improvement was identified.

Further explanation of the non-conformities raised and corrective actions taken by the company are provided in section

3.5. The company has already prepared and implemented the corrective action that had been reviewed and accepted by

Auditor in form of documentation evidence e.g. (document record/photographic/etc). Those corrective action taken that

consist of one (01) non-conformance against supply chain requirement for CPO mill and one (01) opportunity for

improvement shall be verified during next assessment.

MUTUAGUNG LESTARI found that Gersindo Minang Plantation – PT Gersindo Minang Plantation dan PT Permata

Hijau Pasaman, WILMAR International Limited complied with the requirements of RSPO Principles & Criteria and

National Interpretation, RSPO Principles and Criteria (P&C) for Sustainable Palm Oil Production, Republic of Indonesia -

RSPO INA-NIWG, May 2008 and/or Scheme Smallholders, October 2009 and RSPO Supply Chain Certification

Standard November 2011 for CPO Mill.

Therefore MUTUAGUNG LESTARI Recommends RSPO Certification of compliance is Continued.

Ref Std. VERIFICATION RESULT of MUTU-Certification

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY

1.1 Plantation and Palm Oil Factory have to give adequate information for stakeholders in appropriate language and forms, to ensure the effective participation of stakeholders in decision-making.

Company has recorded the information request and response. Most of the information request purposed by stakeholders were fund assistance request. For example: PT. GMP

On November 29th 2014, Letter from Lingkung AUA Village Cooperative Unit (No.114/UMKG-LA/2014) purposed to PT GMP in term of field visit to PT GMP.

On October 18th 2014, Letter from West Pasaman Government Secretary (No. 570/528/BPMT2T/IX/2014) purposed to PT GMP in term of Invitation of Socialization of Capital Investment Policy.

On December 29th 2014, Letter from West Pasaman Anniversary Celebration Committee (No. 90/00/Bup-Pasbar-2014) purposed to PT GMP in term of Fund Request for the 11th anniversary celebration of West Pasaman District.

PT. PHP

On May 6th 2014, Letter from Islamic Religious Day of Mosque Al-Anhar Committee of PHP 2 purposed PT PHP in term of fund request assistance.

On July 20th 2014, Letter from the Head of Aungai Aua Sub-District (No.400/118/Umum-2014) purposed to PT PHP in term of fund request for Head of Sub-District Competition event.

On November 3rd 2014, Letter from Sasak Ranah Pasisia Sub-District MTQ Committee (No.15/PP-MTQ/SRP/2014) purposed to PT PHP in term of MTQ fund request.




The example of information response were as follows: PT. GMP

On January 13th 2014, letter of invitation of the Head of Nagari Air Gadang Inauguration (No.05/Bamus-LA/2015), PT GMP has given wreath.

On December 22nd 2014, Letter from West Pasaman Anniversary Celebration Committee (No.090/00/Bup-Pasbar-2014), PT GMP has given fund assistance as much as IDR 2,000,000.

PT. PHP

On October 27th 2014, Letter from Islamic Religious Day of Mosque Al-Anhar Committee of PHP 2 purposed PT PHP in term of fund request assistance (No.15/PP-MTQ/SRP/2014), PT PHP has given fund assistance as much as IDR 1,000,000.

On July 14th 2014, Letter for fund assistance request for head of sub-district competition (No.400/118/Umum-2014), PT PHP has given fund assistance as much as IDR 500,000.

Company has had SOP of Document Maintenance (No. PRO-GEN-002 April 2012) legalized by GEM Jeffry Gugkang on 2nd. It was purposed to ensure the record of the identified Quality Management System, Environment, OHS, RSPO, and ISCC. It will be maintained for the specific period. The document maintaining period is as follow: a) Seven (07) years for the document of quality management system, environment, OHS and RSPO, and ISCC. b) Three (03) years for administration archieve. c) Ten (10) years for taxation archieve. d) Three (03) years for personnel’s archieve & clinic archieve after the employees were resigning.

Entire record of Bina Mitra for social cases are maintained by referring to the company policy.

Status: Comply

1.2 Management documents are publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes.

PT. GMP and PT.PHP has SOP of Information Service for Stakeholders (No.PRO-BNM-006) which was legalized by GEM Lo Koon Wai on October 1st 2011. The procedure was composed to provide proper information service to stakeholder or other parties which were related to environment, social, and law. The procedure was composed as technical guidance for the implementation of transparency and obligation to inform the publicly accessed information to public refer to the regulation. The documents which are publicly-accessed documents are as follows:

a) EIA Document ( Environmental Impact Assessment ) b) Company Annual Report c) Company Policy d) Land Use Title Permits and other related permits e) Estate and Mill Production Monthly Report f) Hectarage of mills and estate operational area supported with map g) Map of rivers located within estate area h) Estate and Mill Operational Procedure i) Company Organization Structure j) Report of community relation social program k) Program of Occupational Health and Safety

Other undescribed documents are classified document which are internally-accessed documents. Company has had SOP of Document Maintenance (No. PRO-GEN-002 April 2012) legalized by GEM Jeffry Gugkang on 2nd, it was purposed to ensure the record of the identified Quality Management System, Environment, OHS, RSPO, and ISCC. It will be maintained for the specific period. The document maintaining period is as follow:

a. Seven (07) years for the document of quality management system, environment, OHS and RSPO, and ISCC. b. Three (03) years for administration archieve. c. Ten (10) years for taxation archieve. d. Three (03) years for personnel’s archieve & clinic archieve after the employees were resigning.




Entire record of Bina Mitra for social cases are maintained by referring to the company policy.

Status: Comply

PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

2.1 There is compliance with all applicable local, national and ratified international laws and regulations.

PT GMP & PT PHP has had document of the List of Regulation and Statue for each must-complied aspects. Type of the must-complied aspects are groupped into severals aspects as follows:

Regulation in term of Occupational Health and Safety (38 regulations).

Regulation in term of Manpower (43 regulations).

Regulation in term of Environment (68 regulations).

Regulation in term of Plantation (66 regulations).

According to the verification over the result of evaluation conducted by company in the nend of December 2014 (Each Semester), company has complied entire regulations refer to each aspects previously described. It was also supported with the information from West Pasaman District Agencies (Environment Agency, National Land Agency, Plantation Agency, and Manpower and Social Agency) which describes that the company has complied entire regulation for entire estate and mills operationals. For example:

Company has involved lifting and transporting operation to gain Operator License by referring to the Manpower Ministry Regulation Number 9 year 2010.

Company has involved Welding expert to gain the license for welding expert competence refer to the Manpower Ministry Regulation Number 2 year 1982.

Company does not hire underage workers refer to the Statue Number 13 Year 2003.

Protection over plant is conducted by using IPM technique refer to the Statue Number 12 Year 1992.

Company has supported hazardous waste storage with hazardous waste symbol refer to the District Environmental Impact Management Agency Decree Number 5 Year 1995.

Company has had Hazardous waste storage refer to the Government Regulation Number 18 Year 1999.

PT GMP & PT PHP has also conduct regulation adjustment over regulation changes. For example:

Adjustment over employees wage refer to the West Sumatera Province Governor Decree Year 2013 Number 562.846.2013 dated October 29th 2013 in term of West Sumatera Province Minimum Wage Standard for period of 2014 as much as IDR 1,490,000 (One Milion and Four Hundreds and Ninety Thousand Rupiah) per month.

Memorandum Intern from the Head of HRD Head to AGM/GEM/MM/Pimpinan OU/, Number 001/WIP-HRD/Int-I/2014 Dated January 7th 2014 in term of West Sumatera Province Minimum Wage Standard for period of 2014. The maint points of the policy were:

I. DAILY EMPLOYEE’s MINIMUM WAGE STANDARD a. Daily employee’s minimum wage standard since January 1st 2014 is IDR 1,490,000 per month or IDR

59,600 per day. b. For entire type of employees, the increase of Minimum Wage Standard was IDR 5,600 per day. c. The daily employees has been determined by referring to the achievement per day of the daily employees

achieve.. II. CONTRACT WAGE STANDARD (CONTRACT, HEAVY EQUIPMENT OPERATOR, FFB LOAD /

UNLOADING AND VEHICLE DRIVER). The increase of contract wage, heavy equipment operator wage, FFB loading / unloading and driver’s wage were regulated by CEO/PD/PH/GM/FC/AGM/RPTM WIP along with HRD Departemen by considering the factor of Job type, work capacity, and property of the job. According to the example of employee payment slip for period of December 2014, the company has given the wage by referring to the applied regulation.

According to the consultation result with West Pasaman District Manpower, Social and Transmigration Agenyc, company has given the wage refer to the applied province regulation.

Status: Comply




2.2 The right to use the land can be demonstrated, and is not legitimately contested by local communities with demonstrable rights

PT Gersindo Minang Plantation and PT Permata Hijau Pasaman has had document in term of land acquisition and management as follows: PT GMP The area managed by PT GMP is 3,600 Ha. PT GMP is able to show the evidence of land ownership in form of:

Decree of Agraria Ministry / Head of National Land Agency Number 78/HGU/BPN/97 dated July 15th 1997 in term of issuance of Land Use Title over the land in Pasaman District, West Sumatera Province for 30 years ownership over 3,600 Ha of land located in Pasaman Sub-District, Pasaman District, West Sumatera Province.

There was a Map of Specific Situation Image Number 03/1994 with scale 1:12,500 dated May 17th 1994.

There was a Land Use Title Certificate Number 1 Year 1997 dated September 18th 1997 which was issued by the Head of Pasaman District National Land Agency.

PT PHP II

Decree of the Head of National Land Agency Number: 76/HGU/BPN/2004 dated October 4th 2004 in term of issuance of Land Use Title over the land in Pasaman District, West Sumatera Province for 30 years ownership over 1,014 Ha located in Luhak Nan Duo Sub-District and Sasak Ranah Pesisir Sub-District, West Pasaman District, West Sumatera Province.

There was a Map of Specific Situation Image Number 01/Sasak/2005 with scale 1:12,500 dated March 30th 2005.

There was a Land Use Title Certificate Number 18 year 2005 dated March 31st 2005 which was issued by the Head of West Pasaman District National Land Agency.

PT PHP I also has shown the progress of Land Use Title Certificate issuance which was the document of the Head of Republic of Indonesia National Land Agency Number 135/HGU/BPN RI/2014, dated September 30th 2014 in term of Land Use Title Issuance over the land in West Pasaman District, West Sumatera. It was the response of the Decree of the Head of National Land Agency Number 65/HGU/BPN/2004 dated October 4th 2004. The content of the letter was to grant PT Permata Hijau Pasaman the Land Use Title for 20 years over 1,247 Ha of the land located in Nagari Sasak and Nagari Kapar, Sasak Ranah Pasisi and Luhak Nan Duo Sub-District, West Pasaman District, West Sumatera Province, as described on the Map of Land on March 7th 2014 with Map Number 05-03.17.2014 which was issued by the Office of West Sumatera Province National Land Agency and consisted of NIB. 03.17.00.00049 for 932 Ha and NIB. 03.17.00.00050 for 315 Ha. After the issuance of the Decree of the Head of Republic Indonesia National Land Agency Number 135/HGU/BPN RI/2014, dated September 30th 2014, the area of PT PHP I was then turned from 1,600.725 to 1,247 Ha. Company has shown the area statement for period of 2015 (including PHP Unit I). Below was the attachment of Official Record of Ha Statement Area Changes of PHP I Number 002/PF21/PHP/XII/2014, dated December 31st 2014 from 1,243.90 Ha to 1,247 Ha (344 Ha was purposed for Kapa Scheme Smallholders Area). It means that the OFI Number 1 on the indicator has been followed up by Company. PT GMP and PT PHP has also had the report of boundary pole monitoring result purposed to reccgnize the boundary of the managed area. In order to maintain boundary pole, company has SOP of Boundary Pole Installation and Monitoring (001/SOP/GIS/2014). According to the SOP, the boundary pole monitoring shall be conducted 3 months after installation or at least 1 year. The objective was to ensure that the position was not moved by or stay on the installation place. PT GMP According to the document of Land Use Title Boundary Pole, there are 42 boundary poles. The document of Land Use Title Boundary Pole was describing that the maintenance of boundary poles was conducted 3 times a year in February, July, and November. According to the monitoring result, entire poles were in good condition. The pole for sampling were pole BTS XXVIII, BTS XXVII, BTS XXVI, BTS XXV, BTS XVIII, BTS XIX, BTS XX. According to the sampling result, 7 poles were well read and well maintained.




PT PHP II According to the document of Land Use Title Boundary Pole, there are 26 boundary poles. The document of Land Use Title Boundary Pole was describing that the maintenance of boundary poles was conducted 3 times a year in February, July, and November. According to the monitoring result, entire poles were in good condition. The pole for sampling were pole BTS 02, BTS 03, BTS 06, BTS 07, BTS 18, BTS 19, BTS 22 and BPN 02). According to the sampling result, 8 poles were well read and well maintained. According to the document verification and field visit along with consultation with several parties (Tanjung Pangkal Village and Sikilang Village) and other agency (West Pasaman District National Land Agency), there was no land conflict occurred within PT GMP and PT PHP estate area.

Status: Comply

2.3 Use of the land for oil palm does not diminish the legal rights, or customary rights, of other users, without their free, prior and informed consent.

The establishment of PT GMP and PT PHP estate was conducted through several stages such as negotiation process and agreement with the traditional right owner and other ascociated parties. There were evidence of agreement record with several parties. For example: PT GMP There was a declaration letter which describes the handover of land from “Daulat Yang Dipertuan Parit Batu Pucuk Adat Pasaman, Ahmad Bandaro Pucuk Adat Lingkung Aur, beserta Hakim Nan Barampek and Ninik Mamak (Elders)” Tanjung Pangkal Village, as the owner of Ulayat Forest Land of Nagari Lingkung Aur, Pasaman Sub-District, Pasaman District to PT GMP on November 5th 1991. The provided informations were:

We agree to hand over the land to PT Bukit Taun for the expansion of estate. The right handover shall be conducted in front of the Committee of Land Compensation of Pasaman District.

Provision and handover of Ulayat Forest Land of Nagari through Costumary Law of ADAT DIISI LIMBAGO DITUANG for IDR 130,000,000,- (a Hundred and Thirty Million Rupiah), with detail: - 50% of IDR 130,000,000,- = Rp. 65,000,000 (Sixty Five Million Rupiah) was received during the handover to

PT Bukit Taun - 50% of IDR 130,000,000,- = Rp. 65,000,000 (Sixty Five Million Rupiah) was received after the measurement

of PT Bukit Taun

PT Bukit Taun declared that they have received the handover of the land from Pucuk Adat and Ninik Mamak (Elders), owner of Ulayat land of Nagari Lingkung Aur with detail: - 60% of 6,000 Ha = 3,600 Ha was converted to company estate - 40% of 6,000 Ha = 2,400 Ha was converted to scheme smallholders for the descendant

The statement was signed by Pucuk Adat Pasaman, Pucuk Adat Lingkung Aur Paninjaw, Hakim Daulat Parit Batu, Hakim Daulat Katimahar, Hakim Daulat Kp. Mantipo, Hakim Daulat Kp. Gugung, and Ninik Mamak Tj. Pangkal. PHP II There was waiver of land ownership from Maligi Village Ninik Mamak (Elders), Kenagarian Sasak, Pasaman Sub-District to Regional Government on September 14th 1997. The provided informations were:

The owner of the Maligi Ulayat Land of Kenagarian Sasak for + 2,118 Ha, which was located in Maligi Village, Pasaman Sub-District, West Sumatera Province handover the land to the State and would not object for the conversion of the land for scheme smallholders which will be managed by Village Cooperative Unit as well as building the estate infrastructure refer to the Decree of Pasaman Regent.

The statement was signed by the Head of Pasaman District National Land Agency, Chief of Maligi Village, Pasaman Regent Assistant in West Pasaman, Pasman Regent, Datuk (Baron) Hajo Lelo, Datuk (Baron) Hudo, Datuk (Baron) Rangkayo Sati, Representative of Hajo Sadeo, Representative of Datuk (Baron) Sinaro Mangkuto, and Head of Sasak




KAW. In term of the objection of the Chief of Kapa Nagari Costum Unity which has been informed via RSPO Grivance Mechanism on October 30th 2014, it has been followed up via:

Meeting on November 19th 2014 between Representative of Kapa Community, Representative of Wilmar, and Representative of FPP has been facilitated by RSPO in Kualalumpur. The conclution of the meeting was the each party was agreeing for hand the issue to National Land Agency and West Pasaman Government.

Assembly in West Sumatera Province National Land Agency has been followed up on December 10th, 2014.

Indonesia Complaint Coordinator which Represents RSPO Complaints Panel has issued Letter on March 10th 2014 to the Nagari Costumary Unity of Kapa, Luhak Nan Duo Sub-District, West Pasaman, West Sumatera, Indonesia Up: Alman Gampo Alam, SH, Pucuk Adat Nagari Kapa and Head of Kerapatan Adat Nagari Kapa.

Panel Committee has composed early decision as follows: - Related to the Land Use Title Certificate. - Panel committee reviews that PT PHP has complied the RSPO P & C Number 2 in term of Compliance of Law

and Regulation. - The land border between Nagari Kapa and Nagari Sasak Community shall be solved by both communities and

the regional government. - No further approval needed due to the land has been legally owned by regional government. - Early acquisition was conducted by the local government and not by company. Therefore, the dispute in term of

land acquisition should be informed to the regional government and the compensation must be proposed to the regional administrative court.

Refer to the letter, panel committee request the community to respond the letter no later than March 24th 2015.

Auditor of PT Mutuagung has also has conducted interview with the Representative of Kapa Community (Pucuk Adat Nagari Kapa & Head of Kapa Nagari Unity) in term of the issue. According to the information, the Kapa community was never mess with PT PHP. The objection of pucuk adat was the Decree of the Head of Republic of Indonesia National Land Agency for granting Land Use Title Right on behalf PT Permata Hijau Pasaman.

Company has shown the Area Statement for period of 2015 (including PHP Unit I) along with the attachment of Official Record of PT PHP I Ha changes of área statement, Number. 002/PF21/PHP/XII/2014, dated December 31st 2014 from 1,243.90 Ha to 1,247 Ha (344 Ha was converted to Kapa Scheme Smallholders area).

Status: Comply

PRINCIPLE #3 Commitment to long-term economic and financial viability

3.1 There is an implemented management plan that aims to achieve long term economic and financial viability.

Company has compiled the Long Term Plan for period of 2014 – 2019. The informations such as Financials, Area statement, Crop, FFB Processed, Cost of production, (Estate Cost and Mill Cost), Plantation Development Cost, Capital Expendicture, Buildings, Workers Housing Requirement, Staff Requirement, Sustainibility Implementation Costs and replanting plan were written on the document. For the replanting program, PT GMP has compiled the replanting program plan for the next 5 years. The document can be traced back through the document of company long term plan. The program will be annually evaluated refer to the condition and taget of achievement based on the previous years. The replanting programs has been compiled and shown below:

Year Plan Realization

2014 431.76 298.12

2015 431.76 -

2016 431.76 -

2017 431.76 -

2018 431.76 -

2019 431.76 -




Company was able to show the evaluation which cause the replanting area for period of 2014 was far from the target such as the replanting area was flooded.

Status: Comply

PRINCIPLE #4 Use of appropriate best practices by growers and millers

4.1 Operating procedures are appropriately documented and consistently implemented and monitored.

Company has SOP in estate which covers the planting plan, nursery, before the planting, land clearing, IPM, manuring of the immature plant, mature plant treatment and FFB loading operational. Furthermore, company has SOP in POM which covers the FFB receipt, sterilization , thressing station, pressing station, clarification station (purification); substasiun Oil recovery tank, stasiun nut and kernel, boiler and engine room, water treatment, final effluent, storage tank washing. In order to ensure the company operational run effectively refer to the applied procedure, company has also had procedure of internal monitoring in form of Plantation Audit which is conducted each semester with some of the monitored aspect were harvesting aspect, treatment and dispatch, and Audit Administration which is conducted annually and covers the payment and wage, crop production per block analysis, daily cost, warehouse and stock, clinic. Record of estate operation for PT GMP and PT PHP is written on Estate Manager Report which describes the information of company operationals such as Block Harvesting System; Production; Field Condition; Manuring and Stock Godown, supplying, and completing; Pest and Disease Controling; Application by Product; Running Account; Estate social condition; CD and Land Security; Cost Managementl and FFB Production Declaration per Month. Meanwhile, the report of PT GMP POm is written on Monthly Production Report, the report is covers FFB receipt, production & despatch, production quality, production cost, cost recapitulation, production statistic, CPO and PK extract, employee position, and production loss. According to the field visit to PT PHP Unit 2 and PT GMP Phase 2, company operationals have been conducted by referring to the applied procedure. For example, no burning method for replanting program and water management for managing peatland area. According to the field visit and interview with the harvesters, they have been aware of the fruit ripeness standard and have used PPE. Furthermore, treatment employees have been aware of the work technical such as using PPE and foreman has aware of the first aid when accident occurred.

Status: Comply

4.2 Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield.

Company has conducted monitoring of soil nutrient in order to recognize the availability of soil nutrient used as medium of palm oil plant every 5 years. There was report of Semi-Detail Soil Survey in PT. GMP (period of 2008) and PT. PHP (period of 2008). The measured parameters were: Texture, acid (pH), Substance of C, N, P, K, Mg, Ca, Na, BS, CEC, Al and H. Furthermore, company has also conducted leaf analysis annually. The result of soil and leaf analysis was used as reference to publish recommendation for applying fertilizer with specific dosage to stimulate the plant to produce optimum production. Company was attempt to maintain and improve soil fertility by conducting manuring refer to the recommendation, empty fruit bunch application, and land application using effluent. Entire of the programs were monitored and recorded. PT GMP was utilizing entire EFB to be applied to the land. Empty fruit bunch utilization has been routinely conducted in PT GMP and has just been conducted in PT PHP unit 2 since 2014 refer to the record of empty fruit bunch application in PT PHP II. According to verification result of EFB utilization based on EFB application report for period of January 2014 to November 2014, the company has applied 36,792 MT for 828.87 Ha and company has applied 11.220 Ton for 280.50 Ha land of PT PHP during the period of January to December 2014. According to the permit of effluent utilization for period of 2014, the entire effluent was able to be utilized for land




application. The land that were permited to be applied were on Block 027, 028, 029, 047 and 048 for 209.01 hectar and land control for block 046A for 43.33 Ha in Pasaman Sub-District, West Pasaman District. The result of verification record of effluent application for the last six months were July = 12.862 m3, August = 24.296 m3, September = 22.759 m3, October = 24.562 m3, November = 32.322 m3 and December = 24.470 m3

Status: Comply

4.3 Practices minimize and control erosion and degradation of soils.

Company has map of soil type (mineral soil and peat soil) and map of topography. The map of soil was created by PARAM AGRICULTURAL SOIL SURVEY (M) SDN. BHD. The map describes:

PT GMP area has mineral soil type (56.4%) and peat soil type (44.4%). The area with level of peat soil type less than a meter was 274.2 ha or 6.6% and soil with depth 150 cm – 300 cm with hectarage for 1,497.2 ha or 37.2%. According to the map of soil spread, the soil categorized as marginal soil was the peat soil with depth 150 cm – 300 cm for 1,497.2 ha or 37.2%.

PT PHP 1 area has has mineral soil type (28.6%) and peat soil type (72.4%). The area with level of peat soil type less than a meter was 16.3 ha or 1% and soil with depth 150 cm – 300 cm with hectarage for 1,204.8 ha or 71.2%. According to the map of soil spread, the soil categorized as marginal soil was the peat soil with depth 150 cm – 300 cm for 1,204.8 ha or 71.2%.

PT PHP 2 area has has mineral soil type (78.1%) and peat soil type (21.9%). According to the map of soil spread, the soil categorized as marginal soil was the peat soil with depth 150 cm – 300 cm for 189.3 ha or 21.8%.

According to the map of semi-detail work area, PT GMP and PT PHP operational area is a flatland (0 – 4%), therefore, no slope land management strategy found. There were plans and realizations of road maintenance as written on the program and realization of road maintenance for period of 2014. For example: a. In Block 46 Collection Road of PT GMP, road maintenance has been planned for 1,000 meter and it has been

realized for 400 meter on March. According to the field visit to PT GMP, the road condition was well maintained (road hardening was well conducting).

b. In Block 16 Collection Road of PT PHP, road maintenance has been planned for 41,000 Meter and it has been realized for 1,000 Meter on June. According to the field visit to PT PHP II, the road condition was well maintained (road hardening was well conducting).

The proper management and monitoring of peatland area for estate was described on the SOP of peatland water management in document number SOP-EST-008. The water level must be kept for 50 – 75 cm. In order to implement good peatland management, company conducts water management by creating bund off.

1. PT GMP has constructed 30 bund off with waterflow system in order to maintain underground water level for 75 cm and keep it monitored weekly. According to the result of monitoring on December 2014 on 30 bund off, the result of measurement was between 49 cm to 78 cm. Average score was 60 cm and there was the lowest average measurement result in block 12B (collection dain) and the highest average measurement result in block 22A (collection drain)

2. PT PHP I has constructed 21 bund off with waterflow system in order to maintain underground water level for 75 cm and keep it monitored weekly. According to the result of monitoring on December 2014 on 21 bund off, the result of measurement was between 40 cm to 65 cm. Average score was 50 cm dan and there was the lowest average measurement result in block 13C and the highest average measurement result in block 16A

Strategy of marginal land area management was referring to the map of semi detail soil owned by company. There was SOP in term of peatland management and monitoring for palm oil planting properly. According to the procedure, company must prepare the drainage system, company shall only plant on the sapric and hemic peat soil and shall not planting on fibric peat soil. The level of the water that must be kept from 50 to 75 cm (the lowest level was 75 cm). Realization of manuring was referred to the agronomy recommendation. According to the field visit to the peatland area (block 5 PHP 1), there was an implementation of peatland management strategy such as drainage system (primary drainage sewer, secondary drainage sewer, and Field drain), subsidiency pole, Bund off No. 1 and monitoring of surface




water level (50 cm). Improvement of soil fertility was conducted by applying EFB. For example, in block 55 of PT GMP and Effluent Application (Land Application).

Status: Comply

4.4 Practices maintain the quality and availability of surface and ground water.

Company has SOP of riparian management – riparian belth refer to the Document Number SOP-EHS-018 (GMP) and SOP-EHS-017 (PHP) revision 00 started from October 1st 2011. It was legalized by Gem. The provided informations were:

Marking of riparian area painted in red.

Determining the width of riparian area: Riparian width for big river is 100 meter of the riverbank, and riparian width for affluent is 50 meter of the riverbank. Buffer zone for the reservoir is 10 meter of the reservoir banks and for other waterway is <5 m to 10 m

For the plants that has been already planted in riparian shall no be manured and plant treatment is conducted manually. .

According to the result of field observation to Batang Aling River of PT. PHP II, the efforts to protect riparian was can be seen from the buffer zone boundary zone in form of yellow ribbon on the palm oil plant (5 plants off the riverbanks), signboards (bufferzone), suggestion signboard to preserve riparian area. Company has protected the water source (quantity, quality, and continuity) as written on the report of compliance over HCV management plan for period of 2011 such as:

a. Documentation of trees rods painting as the boundary of riparian area. b. Documentation of sign board of riparian rehabilitation such as prohibition to spray poison, manuring, slashing,

and dispose the waste nearby waterway. c. Documentation of socialization to sprayer in term of prohibition to spray in riparian area no waterway.

Socialization was attended by 10 participants in PT GMP phase II on September 10th 2012. PT GMP Company was testing Batang Alin River water quality, the test was authorized to Health Laboratory of West Sumatera Province Health Agency. The quality threshold was referring to the West Sumatera Governor Regulation Number 5 Year 2008. The test was conducted each semester. According to the test result, entire parameters were complied the quality threshold. Surface water quality program was conducted twice a year in Batang Saman River. The test was authorized to Research and Padang Industrial Standardization Department, Department of Climate and Industrial Quality Study, RI Industry Ministry (KAN LP – 607 – IDN). According to the result of water quality of Batang Saman River and Batang Alin River in 1st Semester in May 2014, the entire parameters were in accordance with the quality threshold. Company was conducting routine effluent monthly each date of 10th ensuring that the effluent complies the quality threshold in order to be able to be applied (Land Application). According to the test conducted on July to December 2014, the parameter of BOD5, COD and pH were still below the quality threshold. The quality threshold was referring to the Environment Ministry Decree Number 29 Year 2003. The underground water quality test on the monitoring well was conducted each semester. The test was authorized to Research and Padang Industrial Standardization Department, Department of Climate and Industrial Quality Study, RI Industry Ministry (KAN LP – 607 – IDN). For example, the test was conducted on Test Location, Control Land, and Settlement’s Well on December 22nd 2014. During the period of 2014, the water usage for mill was 549.75 MT for processing stage, boiler, and domestic waste while the quantity of the processed FFB was 328,412. Therefore, the average ratio of water usage per ton of FFB was 1.17 MT per ton of FFB. PT PHP According to the batang Pasaman River water quality (before and after estate establishment) and batang Kapar River




which was conducted by Medical Laboratory of West Sumatera Province, the almost entire tested parameters were complying the quality threshold refer to the West Sumatera Governor Regulation Number 5 Year 2008, except for the DO parameter. The program of surface water quality monitoring was conducted twice a year in Batang Alin River and Batang Saman River.

Status: Comply

4.5 Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management (IPM) techniques.

Integrated Pest Management Program conducted by company were:

Program of pest monitoring / EWS census which was conducted each quarter.

Program of Turnera Spp treatment each two months.

Tyto alba population monitoring regularely monthly.

Installation of Pheromone Traps to prevent rhinoceros beetle in replanting area.

Program of Pest and Disease management which was implemented by company was monthly monitored and evaluated and the control strategy was determined (manually, biologically or chemically). According to the field visit to PT GMP Phase 2 and PT PHP Unit 2, there was no pest and disease attack exceeding the pest and disease attack threshold. In order to anticipate the attack of Palm Oil Leaf Eater, company was planting beneficial plants such as Turnera Subulata and Antigonon leptosus. Furthermore, in order to control rat attack, company was using Barn Owl (there were 2 Barn owl box in PT PHP area and 5 barn owl box in PT GMP are). Company has held training of pest and disease which was attended by 9 participants on December 9th 2014. According to the result of document review and field visit to pesticide warehouse of PT GMP and PT PHP, there was no pesticide usage during period of 2014 for controlling pest and disease which attacking palm oil plant.

Status: Comply

4.6 Agrochemicals are used in a way that does not endanger health or the environment. There is no prophylactic use of pesticides, except in specific situations identified in national Best Practice guidelines. Where agrochemicals are used that are categorized as World Health Organization Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented.

Company has had the list of pesticide used by company refer to the Book of Agriculture and Forestry Pesticide yar 2011 which was issued by Directorat of Fertilizer and Pesticide, Directorat General of Agriculture Facility, Republic of Indonesia Agriculture Ministry. Furthermore, company did no use pesticide type of 1A and 1B and paraquat. Company has had the record of pesticide usage which covers the type of pesticide, active substance used, application hectarage, uantity of usage per hectare and target. According to the document review, pesticide usage has been referring to the producer’s recommendation and it has been applied by the well trained pesticide sprayer refer to the usage manual and storing manual. Company has conducted socialization and training in term of pesticide usage. For example:

Socialization of spraying to the sprayer which was attended by 8 participants on November 20th 2014.

Training of spraying technique and treatment which was held by PT Cipto Agro Sejahtera on September 18th 2014 and it was attended by 11 participants.

According to the document observation, interview, and field observation, there was no pesticide type 1A and 1B WHO nor the substance enlisted on Stockholm and Rotterdam Convension that were used by company. According to the result of field observation on PT GMP POM Hazardous Waste Storage, PT GMP and PT PHP Estate, known that the hazardous waste has been stored in the licensed storage refer to the requirements on permits and statue regulation, has has fire extinguisher, first aid kit, lable and symbol. Furthermore, hazardous waste storage officer has been equipped with PPE and routinely receiving medical check up. According to the result of interview with West Pasaman District Environment Agency, company has routinely reporting




Hazardous Waste balance sheet and manifest. Furthermore, no issues nor reports from outside parties in term of negative impacts over environment caused by PT GMP and PT PHP estate and mill operation.

Status: Comply

4.7 An occupational health and safety plan is documented, effectively communicated and implemented.

Company has had policy in term of OHS which was legalized by Top Management on September 2010 which describes that company has several commitments such as:

1) Complying Statue Regulation in term of OHS whether local, national, or internationally ratified. 2) Implementing and maintaining Safety Management System. 3) Creating and communicating to the employees, contractor, client, and guest in term of safety work procedure

within workplace in order to prevent work accident, health danger, and damage, or goods loss. 4) Showing and building the awareness through regular and proper training for the contractor and smallholders by

involving them to the process of the sustainable improvement. As for the implementation, company has had procedure in term of OHS, Work program in term of OHS and conducting campaign and socialization. According to the interview result with employees in GMP POM, PT GMP Phase 2 and PT PHP Unit 2, the commitment has been socialized in each morning briefing and installation of signboards and posters of safety work practice. Furthermore, it was informed through OHS training. Management unit has formed OHS Guiding Committee Structure in each management unit (Pangkatan POM, PT GMP, PT PHP Unit 2) and it has been legalized by West Pasaman District Manpower and Transmigration Agency. According to the result of interview with that agency, company has informed the OHS Guiding Committee report each quarter the the agency. The report covers entire OHS programs such as OHS Guiding Committee Recommendation, Result of Work Accident Investigation, Recapitulation of Work Accident, Report of OHS Guiding Committee Program, report of employee’s medical check up, minutes of meeting of OHS Guiding Committee which is conducted monthly. Company has involving entire employees on the Labour Social Assurance Program, Death Assurance, and Pension Assurance. According to the field visit, entire employee have been registered. The result of document review and interview with workers shows that company has conducted regular medical check up for the high-potential danger workers for the mills area such as Audiometric Test (hearing function), Spirometri (lungs function) and Cholinestrase (chemicals poison) while for the estate area was (chemicals poison). Medical check up covers mills employees such as loading ramp workers, warehouse workers, laboratory workers, processing station workers, electricity workers, workshop, clarification, waste, sterilizer, maintenance, press, water treatment, welder, etc. meanwhile, the medical check up for estate workers is for sprayer, manurer, warehouse workers, and loading operator. According to te result of medical check up, there is no sick workers caused by working in high-potential danger station. Company has had document of risk analysis for OHS program. The program was compiled to conduct identification and analysis of dangers potential that possibly occurred in some area along with the recommendation to minimize the danger’s potential. According to the result of document review and field visit to mill and estate, management unit has socialized the document of risk analysis to entire workers. According to the field visit and interview with workers in PT GMP Phase 2 and PT PHP Unit 2, the management unit has provided PPE for employees. For example, harvesters were given boots, helmet, glasses, and gloves. According to the field visit, the foreman has aware of the first aid should be given when accident occurred. It was supported with the interview with harvester foreman in PT PHP and PT GMP Phase 2. Management unit has consistently monitor the work accident which informs the month of event, number of case, work accident location, type of accident, impact, missing work hours, follow up, and result. Work accident was monthly monitored. The evaluation was discussed on the monthly meeting of OHS Guiding Committee as well.

Status: Comply




4.8 All staff, workers, smallholders and contractors are appropriately trained.

PT GMP POM, PT GMP and PT PHP Unit 2 Estate has compiled the training program for period of 2015 for staff and employees. The type of training held by company are harvesting technique, manuring technique, spraying technique, fire extinguishing, occupational health and safety, hyperkes training, IPM training, and transporting operator training. Record of trainings held by management unit are stored and documented (the training recapitulation). The evidence of training are document of program and realization of training program for each workers, attendance list, photographs of training, certificate. According to the interview result with PT GMP POM, PT GMP and PHP Unit 2 Estate employees, management unit has held trainings such as first aid training, safety work practice, and etc. In order to ensure company management unit cooperates with the well trained and manpower regulation-complied contractor. Company is referring to the Procedure of Contractor Selection and Evaluation (PRO-GEN-009) dated October 1st 2011. According to the procedure (point 6.1 in term of procedure description), the manager of work unit shall assess the sub-contractor in term of quality performance, service, experience, communication aspect, environmental consideration, and OHS consideration. Furthermore, according to point 7.1 (general term), the sub-contractor which shall cooperate with company must show the company profile, as evidence of legality, experience, and competence. According to the result of document review and interview with contractor, company has selected contractor by referring to the applied procedure. Declaration of contractor law compliance was written on the legal letter. It was declaring the contractor compliance to support the company management system for complying RSPO, ISCC or other certification scheme principle requirements for each program conducted.

Status: Comply

PRINCIPLE #5 Environmental responsibility and conservation of natural resources and biodiversity

5.1 Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and plans to negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement.

PT GMP Company has document of Addendum of Environment Impact Assessment, Environmental Management and Monitoring Plan. The document has been determined by West Pasaman District with Number 188.45/1080/BUP-PASBAR/2014 in term of Environment Permit for PT GMP Estate and Mill Operational in Pasaman Sub-District, West Pasaman District. Addendum of EIA was granted by several considerations such as additional boiler, turbine establishment and methane capture. Previously, company has had document of PT GMP Estate and Mill Environmental Management and Monitoring for 6,000 Ha refer to the Legalization Letter of West Pasaman Regent Number 188.045/182/BUP-PASBAR-2009 dated January 7th 2009. Content of the Document of Addendum of Environment Impact Assessment was the environmental management and monitoring plan which consisted of:

Reduction of air quality (dust, SO2, NO2, CO, refer to Government Regulation Number 41 Year 1999). Noise for Mill.

Reduction of water quality (river and waste)

Changes of biodiversity

Land Fire

Economy Increase

Occupational Health and Safety Company has implemented environment management and monitoring as written on the report of implementation as follows:

1. Report of Environmental Management and Monitoring in 1st Semester 2014 which was handed over to West Pasaman District Environment Agency on July 25th 2014. Furthermore, there was also evidence of report hand




over to West Sumatera Province Environmental Impact Control Agency on August 5th 2014. 2. Report of Environmental Management and Monitoring in 1st Semester 2014 which was handed over to West

Pasaman District Environment Agency on January 16th 2015. Content of the report was describing:

Air Quality (SO2, NO2, CO, CH4, NH3, H2S, dust, noise)

Emission (HCL, NO2, SO2, particle, Cl2, Ammonia, HF, opacity, CO)

Water Quality (effluent, surface and underground water)

Solid Waste (empty fruit bunch, fiber, and sludge)

Social economy, culture and health (changes of land usage function, reduction of community’s income / welfare, recruitment of workforce, employees and community’s health, community’s perception, and work safety).

Biodiversity (flora-fauna and water biota disturbance), community’s income, work safety, community’s health and aesthetic.

PT PHP Company has document of Environment Management and Monitoring Effort of PT PHP refer to the Legalization Letter of Pasaman Regent No. 008/06/PLH/2004 dated February 18th, 2004. The legalization letter was valid as long as the purposed-party complies entire terms written on the composed document of Environmental Management and Monitoring Effort and complies the recommendation of Environment Team. Content of the document was consisted of:

Social, economy, culture: community’s response and perception over estate

River Water Quality: pH, TSS, BOD5, COD, Cu, Pb, amonia, upper layer oil

Employees drinkable water quality in base camp of PHP I and PHP II: drinkable water physical and chemical property

Health: blood sample of pesticide sprayer and pesticide warehouse officer

Pesticide: parameter of Cu (Cuper)

Workshop: parameter of Pb (timbal) and upper layer oil Company has conducted environmental management and monitoring as written on the report of implementation. The report has been handed over to the ascosiated agencies such as: 1. Environmental Management and Monitoring Effort in 1st Semester was handed over to West Pasaman District

Environment Agency on August 20th 2014. 2. Environmental Management and Monitoring Effort in 2nd Semester was handed over to West Pasaman District

Environment Agency on January 16th 2014. Content of the report was consisted of:

Surface water quality (Batang Alin River and Batang Pasaman River): TSS, TDS, pH, DO, BOD, COD, Phospat, Nitrat, Nitrit, Amoniak, Copper, Kadmium, Seng, Oil / Fat.

Physical and chemical soil quality: texture, structure, pH, C organic, N total, P tersedia, K2O, P2O5, Exchangable alcali, KTK and KB

Flora and Fauna Biodiversity

Water Biota disturbance

Community’s Income

Community’s perception

Employees and Community’s health

Work Accident

Status: Terpenuhi

5.2 The status of rare, threatened or endangered species and high conservation value habitats, if any, that exist in the plantation or that could be affected by plantation or mill management, shall be identified and their conservation taken into account in management plans and operations.

PT GMP Company has had report of HCV Identification of PT GMP in West Pasaman District, West Sumatera Province. HCV




document compilation has involved several stakeholders such as Ninik Mamak (Community’s Figure), Chief of Jorong, Nagari Representave, Village Cooperative Unit Representative, Natural Resource Conservation Agency (BKSDA), and PT AKO Representatives (directly bordering company). The result of HCV Area identification within PT GMP Estate area were:

Batang Pasaman River Coridor (Total of Wide = 1 km or 500 m left-right of river): Erossion Controller (morfoerosi) and sedimentation (HCV 4.2) with hectarage of 163.10 Ha.

Freshwater Swamp (block 63, 64, 65, 75): Refugium for unique ecosystem fauna, flood controller, sedimentation controller (HCV 1.4; 3; 4.1; 4.2) with hectarage 118.79 Ha.

HCV hectarage within PT GMP Estate is 281.89 Ha. The program was continued by the compilation of Document of PT GMP HCV Management, West Pasaman District, West Sumatera Province for period of 2013 to 2015 (Matrix of HCV area management plan for period of 2013 to 2015 was attached).

PT PHP Company has had report of HCV identification of PT PHP in West Pasaman District, West Sumatera Province. HCV document compilation has involved several stakeholders such as Ninik Mamak (Community’s Figure), Chief of Jorong, Nagari Representave, Village Cooperative Unit Representative, BKSDA, and PT AKO Representatives (directly bordering company) Result of HCV Area Identification within PT PHP nucleus estate area:

Freshwater Swamp: Refugium of fauna, Unique ecosystem, and flood controller (HCV 1.4; 3; 4.1) with hectarage of 13 Ha.

Batang Alin Riparian: Erossion Resistance (HCV 4.2) with hectarage 23.2 Ha.

PT PHP HCV Area Hectarage within the Estate was 36.2 Ha. The program was continued by compilation of document of HCV Management of PT PHP, West Pasaman District, West Sumatera Province for period of 2013 to 2015 (Matrix of the HCV Management Program Plan for period of 2013 to 2015 was attached). Stages conducted by company to protect endanger or threatened species, or habitat with HCV such as; a. Installation of HCV area signboard and prohibition signboard for the identified HCV area and conduct socialization

for the employees. b. Training for the employees in term of HCV.

There was an official record of prohibition over the banned activity in HCV area in Division II on November 9 th 2012. The training was purposed to make the employees aware of the HCV area. The taught materials were:

Prohibition to do chemical spraying

Prohibition to conduct manuring

Prohibition to cut the tree

Plantation development

Prohibition to use poison and explosion

Dispose the waste recklessly There was a documentation of the programs, marking on HCV area and employees attendance list who join the training. There were 15 employees who participate on the training consisted of sprayer foreman, and sprayer in Phase 3.

c. Socialization to the employees and the nearby community in term of HCV area existence along with the records of

socialization program implementation. For example: 1. Evidence of socialization invitation (February 20th 2013). 2. Minutes of meeting of socialization of HCV identification result, traditional activity, program of social impact and

SOP in term of company operational dated February 22nd 2013 in Jambak Simpang Empat which was attended by the parties nearby estate area (Government Representatives, Nagari Representatives, Head of Village Cooperative Unit, Ninik Mamak (Elders), Youth and Company Representative: Management &




Employees Representatives). 3. Attendance List (40 people) 4. Photographs of Program 5. MoU of Traditional Activity Management and HCV Area Management. High Conservation Value (HCV):

- Between PT. Gersindo Minang Plantation With Nagari Aia Gadang

- Between PT. Gersindo Minang Plantation With Lingkaung Aua II

- Between PT. Gersindo Minang Plantation With Nagari Kapa

- Between PT. Gersindo Minang Plantation With Nagari Sasak

d. Specific officers for HCV Identification Monitoring and Follow Up have been appointed: 1. Rahmadani Ramli & Umum Barus, PT. Gersindo Minang Plantation, refers to the Letter of Appointment from

Area General Management, No. 017/AGM-Sumbar/Int/I/2013, dated January 1st 2013. 2. Ir. Samsuar & Jumadi PT. Permata Hijau Pasaman 2, refers to the Letter of Appointment from Area General

Management, No. 017/AGM-Sumbar/Int/I/2013, dated January 1st 2013. There was certificate of HCV Monitoring Technique Training for the four of officers which was issued by Aksenta Consultant on January 12th, 2013.

According to the field visit to: 1. Block 62 PT GMP, was one of the HCV identified area in form of freashwater (HCV 1.4, 3 , 4.1, 4.2), there were

prohibition signboards installed nearby area. 2. Blok 5a & 56 PT PHP 2, was one of the HCV identified area (HCV 4.1, yaitu Batang Alin Subsidiary) there were

prohibition signboards installed nearby area. There were also posters of the type of protected animals which were installed nearby office area and several HCV identified area. According to the field visit, company has shown their commitment to preserve HCV area. There was no disturbance over conservation area such as illegal logging, company has also routinely monitor the area.

Status: Comply

5.3 Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner.

Company has had document of pollution and waste source identification which was legalized on November 26 th, 2014. The document describes the information of waste source, waste classification, waste category, waste management, waste disposal and monitoring. According to the identification result on PT GMP, there were 8 types of waste from weighbridge station and office, 6 types of waste from the sortation and loading ramp, 4 types of waste from sterilizer, 3 type of waste from the stresser, 4 type of waste from the press, 5 types of waste from the clarification, 4 types of waste from kernel, 8 types of waste from boiler, 6 types of waste from engine room, 3 types of waste from the water treatment plant, 4 types of waste from the housing complex, and 3 types of waste from workshop. The types of waste were: paper, rag, oil filter, used jerry can, paint can, organi waste, neon bulb, and others. Meanwhile, there were 16 types of waste generated from estate operational such as kitchen waste, used water for washing, pesticide container, tissue box, used box, toilet tissue, office paper, karbon paper, used pastic for fertilizer containers, oil residue, and medical waste. According to the field observation, company has implemented plan of waste management refer to the result of identification. For example, the hazardous waste is stored at the licensed hazardous waste storage then it will be delivered to the licensed collector and then it will be reported to West Pasaman District Environment Agency. Meanwhile, the non-hazardous waste such as organic and anorganic waste are collected in one point and then it will be dispatched to landfills which is located away from the settlement and water source. According to the interview with West Pasaman District Environment Agency, there is no issues nor reports from parties in term of negative impact over environment caused by PT GMP and PT PHP operation. Plan of hazardous waste and agrochemical waste implemented by company was to store the hazardous waste in the licensed hazardous waste storage (PT. Shali Riau Lestari) refer to Decree of Environment Ministry Number 237 Year




2011, dated November 8th 2011. The hazardous waste was dispatched by using licensed transportation (SK.5207/AJ.209/DJPD/2013/140710278BB-0007) and regularely reporting hazardous waste manifest and balance sheet to West Pasaman Environment Agency. Permits of Hazardous Waste Storage as follows:

- For the scope of PT GMP POM hazardous waste storage with Decree Number: 188.45/383/BUP-PASBAR/2013 dated April 9th 2013 and valid for 5 years.

- For the scope of PT GMP Estate hazardous waste storage with Decree Number: 188.45/125/BUP-PASBAR/2013 dated February 15th 2013 and valid for 5 years.

- For the scope of PT PHP POM hazardous waste storage with Decree Number: 1884.45/126/BUP-PASBAR/2013 dated February 15th 2013 and valid for 5 years.

Company has utilized waste. For example:

- According to the field observation in Block 55-AB, company has conducted empty fruit bunch application for 40 ton/ha and it was arranged in one layer of interrow.

- According to the field observation to WWTP pool, the condition of flowmeter was well functioned, there was book of the applied-effluent monitoring. According to the field observation to Division A, Block K10, the area has been allowed for land application and no overflow of effluent over the soil.

- According to the observation over document of fiber and shell monitoring, company has utilized 58,474,963 ton of shell and fiber during period of January to December 2014.

- According to the result of document observation, the waste of pesticide containers, used oil, and others of PT GMP and PT PHP for the 3rd quarter has been handed over to the licensed collector (PT. Shali Riau Lestari) on September 3rd 2014.

Status: Comply

5.4 Efficiency of energy use and use of renewable energy is maximized.

Company has reviewed the renewable energy usage (shell and fiber) for POM Boiler fuek, according to the data of energy efficiency calculation of PT GMP POM for period of January – December 2014, the toal of shell and fiber usage was 58,474,963 ton with toal of the processed FFB usage for 328,412,870 ton. The energy produced from the shell and fiber usage was 4,180,464 KwH. Therefore, it was generating 0.013 Kwh/Ton of FFB. Company has reviewed the petroleum fuel usage (diesel fuel consumption) for period of January to December 2014. According to the result of review, the fuel company need for generator for fully processing was 1,254,139 liter. Cost estimation for generator was IDR 13,992,414,451. By using renewable energy resource, PT GMP POM was then able to retrench the diesel fuel consumption for IDR 13,558,082,146 (96.90 %) during period of January to December 2014.

Status: Comply

5.5 Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as identified in the ASEAN guidelines or other regional best practice.

According to the result of interview with West Pasaman District Government agencies (Environment Agency and Plantation Agency), company implemented mechanical replanting (zero burning principle implementation). It was supported with the evidence shown during field visit to block 35; 37; 39; and 40. Domestic waste was managed by collected in one point and then transported to landfill. Management unit has had procedure for handling and preventing land fire in small and massive scale. The procedure of fire emergency response and fire monitoring, evacuation, environmental consideration, and OHS along with the list of equipments for handling land fire were described on the SOP. According to the public consultation with the government agencies of West Pasaman District and the community nearby estate, there was no land fire occurred during period of 2014 within company operational area. Management unit has facilities to prevent land fire refer to the risk level. The facilities were monthly inspected. According to the inspection on the land fire facilities warehouse of PT GMP and PT PHP Unit II, the facilities were well maintained.

Status: Comply




5.6 Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored.

Company has identified the pollution and emission source generated by POM which was recorded on SOP of Mitigation (No. SOP.EHS.GHG-01) which was legalized by General Estate Manager. The sources of emission were generated by boiler operational, generator operational, waste pool, chemicals usage, transportation and others. Company was then monitor the emission quality in POM refer to the pollution and emission source identification. The result of monitoring was recorded on the document of Environmental Management and Monitoring Plan implementation in 2nd semester period of 2014. For example, air emission quality test toward the boiler, air emission quality test toward the generator, ambient air quality test. Company was then reporting the air quality test result to West Pasaman District Environmental Agency on January 16th 2014 written on the evidence of Environmental Management and Monitoring Plan Report handover. According to the result of interview with EHS staff and West Pasaman District Environment Ageny, company has conducted air quality test and has it reported regularely. No issues and reports from other parties in term of negative impact over environment caused by estate and mill operations. Company has had plan to reduce emission as recorded on SOP of Mitigation (No. SOP.EHS.GHG-01). Plan and effort of emission reduction conducted by company were conducting preventive maintenance and testing boiler emission, conducting preventive maintenance and testing generator emission, constructing land application and plan to build methane capture, chemicals usage and storing refer to the SOP, testing ambient air quality within estate environment and storing oil refer to the SOP, storing fertilizer and pesticide refer to the SOP, pesticide usage refer to the pesticide recommendation, fertilizer usage refer to the fertilizer recommendation, and others. Company has had WWTP in PT GMP POM which consisted of 8 pools such as Pool 1 (Cooling Pond), Poll 3 (Anaerobic I), Pool 4 (Anaerobic II), Pool 5 (Anaerobic III), Pool 6 (Facultative I), Pool 7 (Facultative II), and Pool 8 (Sedimentation). According to the result of field observation to PT GMP POM WWTP, the management has been ran by considering environment principles. For example: pool volume is refer to the generated effluent volume, equipments for managing waste are well running such as mixer pond and flowmeter, no leakage and overflow of effluent. According to the interview with WWTP operator, there is no complaints expressed by the community in term of WWTP management.

Status: Comply

PRINCIPLE #6 Responsible consideration of employees and of individuals and communities affected by growers and mills

6.1 Aspects of plantation and mill management, including replanting, that have social impacts are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate the continuous improvement.

PT GMP There was document of PT GMP Estate and Mill Environment Monitoring and Management for 6,000 Ha referring to the legalization letter of West Pasaman Regent No. 188.045/182/BUP-PASBAR-2009 dated January 7th, 2009. The letter was valid as long as the purposed-letter party implements entire terms written on the composed-DPPL document and comply the recommendation of EIA Assessor Team. The content of the document was the plan of environment management and monitoring consisting of:

Reduction of air quality and noise (dust, SO2, NO2, CO, noise and temperature)

Water Quality Reduction (river and waste)

Changes of biodiversity (flora-fauna and disturbance over water wildlife)

Changes of social, economy, and culture (community’s income and community’s perception)

Work Accident

Community’s health and aestethic

PT PHP There was a document of Environmental Management and Monitoring Effort of PT PHP Estate referring to the




legalization letter of Pasaman Regent Number 008/06/PLH/2004 dated February 18th 2004. The letter was valid as long as the purposed-letter party implements entire terms written on the composed-DPPL document and comply the recommendation of EIA Assessor Team. The content of the document was the plan of environment management and monitoring consisted of:

Changes of social, economy, and culture (community’s income and community’s perception over estate

River water quality: pH, TSS, BOD5, COD, Cu, Pb, Amonia, Upper layer oil

Employees drinkable water quality in base camp of PHP I and PHP II: water physical and chemical property

Health: pesticide sprayer and pesticide warehouse employees blood sample

Pesticide: parameter Cu (Cuper)

Workshop: parameter Pb (timbal) and upper layer oil

There was also:

Report of Social Impact Assessment of PT Gersindo Minang Plantation year 2012 (Review was conducted by Aksenta Consultant).

Report of Social Impact Assessment PT Permata Hijau Pasaman year 2012 (Review was conducted by Aksenta Consultant)).

Plan of Social Management of PT GMP, West Pasaman District, West Sumatera Province, Period of 2013 – 2015.

Plan of Social Management of PT PHP, West Pasaman District, West Sumatera Province, Period of 2013 – 2015. Implementation of Social Impact Assessment (SIA) was involving community’s as source of information (respondent). There was evidence of SIA’s attendance list in PT GMP and PT PHP. The result of the review has also been socialized to the village community and several parties. The evidence of records were in form of:

1. Evidence of Socialization Invitation (dated February 20th 2013). 2. Minutes of meeting of socialization of HCV Identification, Traditional Activity, Social Impact Program and

Procedure/SOP Ascosiated with Company Operational dated February 22nd 2013 in Jambak Simpang Empat which was attended by several arties nearby estate area (Government Representative, Nagari Representative, Head of Village Cooperative Unit, Elders, Community Figures, Youth and Company Representatie; Management and Employees Representatives).

3. Attendance List (40 people) 4. Photographs of Implementation 5. MoU of Traditional Activity Management and HCV Area Management:

- Between PT. Gersindo Minang Plantation With Nagari Aia Gadang

- Between PT. Gersindo Minang Plantation With Lingkaung Aua II

- Between PT. Gersindo Minang Plantation With Nagari Kapa

- Between PT. Gersindo Minang Plantation With Nagari Sasak Company has routinely reporting environment management and monitoring regularely. For example:

Report of PT GMP Environmental Management and Monitoring Plan in 2nd Semester of 2014 to West Pasaman District Environment Agency on January 16th 2015.

Report of PT GMP Environmental Management and Monitoring Plan in 2nd Semester of 2014 to West Pasaman District Plantation Agency on January 16th 2015.

Report of PT PHP Environmental Management and Monitoring Plan in 2nd Semester of 2014 to West Pasaman District Environment Agency on January 16th 2015.

Status: Comply

6.2 There are open and transparent methods for communication and consultation between growers and/or millers, local communities and other affected or interested parties.

There was SOP of Communication, Consultation, and Coordination with Stakeholders of PT GMP No.PRO-BNM-008. Company has shown the evidence of invitation from the Head of Jorong Tanjung Pangka Nagari of Lingkungan Aua, Pasaman Sub-District, West Pasaman District Number 09/KJ-TP/IX/2014, dated September 4th 2014 in term of forum which was discussing the fund of Supporting Community Clinic and Forum. The forum discussed the ongoing construction of Madrasah Building. PT GMP & PHP had followed up the issue by attending the forum (photographs of forum are attached).




Company has shown the list of the updated and grouped stakeholders as follows: 1. Regional Government and the Ascosiated Agencies (52 stakeholders) 2. Sub-District Administration Government / Kanagarian (15 stakeholders) 3. Village / Hamlet / Jorong Administration Government (11 stakeholders) 4. Costumary Community Group (7 stakeholders) 5. Youth Organization (7 stakeholders) 6. NGO (1 stakeholder) 7. Raw Material (FFB) supplier to PT GMP POM (5 stakeholders) 8. Supplier of General Material & Services (84 stakeholders)

Status: Comply

6.3 There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties.

Company has SOP of Complaint Receipt and Dispute Resolution No. PRO-BNM-007 which was legalized by GEM Lo Koon Wai and PT. PHP No. PRO-BNM-007 which was legalized by GEM Jeffry Gugkang on October 1st 2011. The objective of the procedure was as technical guidelines for receiving complaints delivered by stakeholders or other ascosiated parties and to accelerate the process of dispute resolution progress in order to keep the company operational running. Procedure Description:

Company has constructively and immediately respond the complaints delivered by stakeholder.

The incoming complaint and confict to BM RO whether from stakeholders or other units are recorded on the book of complaint receipt and conflict resolution which is then followed up the BM Manager.

BM Manager is studying and analyzing the received complaints and conflict.

BM Manager is looking for the solution by holding forum with the ascosiated parties.

The result of analysis and forum will be followed up to the Managers (GEM/AGM) to take any decision.

The decision taken by Managers shall be returned to BM Manager, if the result of analysis agreed by managers, then it will be followed up to the stakeholders. If it is not agreed, then BM Manager must discuss it with the Elders (Ninik Makak) through forum.

If the result of decision is not agreed by stakeholders, then the Regional Government shall facilitate the assembly as the third party.

If it is still not agreed, then the legal court shall be used. Company was recording and maintaining each complaints and its respond which was delivered by workers. For example: PT. GMP: On October 7th 2014 on behalf Erni Yusnita, nursery workers, proposing for living in the still-empty house. PT GMP was then hand the house in Block DG6 Number 1 in PT GMP housing complex over to Erni Yusnita on October 14th 2014. PT. PHP: On October 1st 2014, on behalf Umar, Warehouse Clerk was complaining his workmate who work withouh regarding the procedure. PT PHP II has composed work arrangement for daily program refer to each tasks.

Status: Comply

6.4 Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.

PT GMP & PT PHP has had SOP of Land Acquisition Number SOP-IJIN LAHAN&OPS-006. The procedure was purposed to ensure that entire decision and action on the process of land acquisition for industrial business shall be conducted properly and by referring to the applied regulations, specifically the issue related to community’s business and costumary land. Company was able to show the record of land compensation which was conducted in past: PT GMP




There was evidence of Nagari Lingkuang Alur / Silih Jariah Ulayat Land Right handover from Pucuk of Costum and Ninik Mamak (Elders) to PT Bukit Daun (earlier company before the merger with Gersindo) for 3,600 Ha that will be converted into estate in for IDR 130,000,000 on November 5th 1991. There were also copy of list and signature of Ninik Mamak (Elders) and Pucuk of Costumary along with other costum figure. PT PHP II There was record of agreement between PT PHP 2 with Ninik Mamak (Elders) of Nagari Sikilang Ulayat Land Authority for 3,500 Ha of costumary land. It was stating that Ninik Mamak (Elders) of Nagari Sasak will be requested for the Land Use Title to PT PHP 2. However, according to the land measurement of National Land Agency, the enabled- estate establishment land was only 442 Ha and according to the agreement, it will be paid for IDR 88,400,000 refers to the costumary law. It has been paid on August 5th 2004. Company also has had record of agreement between PT PHP 2 with Ninik Mamak (Elders) of Nagari Sasak as the Authority of Maligi Ulayat Land for 163 Ha. It was stating that Ninik Mamak (Elders) of Nagari Ninik Mamak of Jorong Maligi will be requested for the Land Use Title to PT PHP 1 on July 26th 1992. According to the agreement refer to the statue, it will be paid for IDR 114,400,000 on June 13th 2005.

Status: Comply

6.5 Pay and conditions for employees and for employees of contractors always meet at least legal or industry minimum standards and are sufficient to provide decent living wages.

Minimum Wage Standard for period of 2014 Company has Decree of West Sumatera Governor (No. 562-846-2013) which was legalized by Irwan Prayitno (West Sumatera Governor) in term of minimum wage standard of West Sumatera for period of 2014 for IDR 1,490,000 / month. The Decree was valid since January 1st 2014. Furthermore, company has also had Memorandum Internal in term of Minimum Wage Standard (No.001/WIP-HRR/Int-I/2014) which was legalized by Dohar Simanungkalit. It was valid since January 1st 2014:

Minimum wage standard for PT GMP and PT PHP employees was IDR 1,490,000 / month or IDR 59,600 / day.

Contract workers wages was determined and regulated by PH/GM/AGM/FAA/RPTM WIP by considering the type of work, difficulties of work, and property of work.

Basic salary of heavy equipment operator and driver was paid monthly and the increase of wage was described on PH/GM/AGM/FAA/RPTM WIP.

Salary of FFB load and unload was determined by referring to the result of assembly (PH/GM/AGM/FAA/RPTM WIP) and the HRD Departement.

UMP Tahun 2015 Company has Decree of West Sumatera Governor (No. 562-802-2014) which was legalized by Irwan Prayitno (West Sumatera Governor) in term of minimum wage standard of West Sumatera for period of 2015 for IDR 1,615,000,-/ month. The Decree was valid since January 1st 2015. Furthermore, company has also had Memorandum Internal in term of Minimum Wage Standard (No.001/WIP-HRR/Int-XII/2014) which was legalized by Bambang Wiguritno. It was valid since January 1st 2014:

Minimum wage standard for PT GMP and PT PHP employees was IDR 1,615,000,- / month or IDR 64,600,-/ day.

Contract workers wages was determined and regulated by PH/GM/AGM/FAA/RPTM WIP by considering the type of work, difficulties of work, and property of work.

Basic salary of heavy equipment operator and driver was paid monthly and the increase of wage was described on PH/GM/AGM/FAA/RPTM WIP.

Salary of FFB load and unload was determined by referring to the result of assembly PH/GM/AGM/FAA/RPTM WIP and the HRD Departement.

According to the data, company has had the list of PT GMP and PT PHP II employees for period of December 2014. Wage payment has been adjusted to the minimum wage standard by referring to the Decree of West Sumatera Governor (No. 562-846-2013) t which was legalized by Irwan Prayitno (West Sumatera Governor) in term of minimum wage standard of West Sumatera for period of 2014 for IDR 1,490,000 / month. For example, employees on behalf Dodi Hendriardi, PT GMP Security received IDR 2,607,946 / month on January 8th 2015 and employees on behalf Edi LB, PT.




PHP II maintenance received IDR 2,598,620 on January 8th 2015. Company has provided the facilities for employees such as housing complex, office, school, school bus, daycare, mosque, electricity, clinic, and etc. according to the field visit to housing complex F10 (PT PHP II) and G6 (PT GMP) and interview with workers, the facilities are well functioned. PT PHP II has also had program to repair employees housing complex G10 for period of 2015. The program was referring to the result of internal audit. Company gives job opportunity for the local community and guide the community for complying the regulations. For example: PT GMP

Cooperative Agrement Letter between PT GMP with CV Karya Anak Nagari for constructing employees housing complex type G10 (No.068/SPK/GMP/X/2014) dated October 15th 2014. The Cooperative Agreement Letter was signed by PT GMP representative (Ir. Sutanto) and CV. Karya Anak Nagari representative (Jhoni Kurnia). Acording to Cooperative Agreement Letter (No.068/SPK/GMP/X/2014) of Clause 7 in term of Manpower, the second party (CV. Karya Anak Nagari) was obliged to comply the manpower regulation (Statue Number 13 Year 2003) including the payment of workers wage and etc.

PT PHP II

Cooperative Agrement Letter between PT PHP with CV Khairannie for purchasing gravels (No.132/SPK/PHP2/X/20140) dated October 30th 2014. The Cooperative Agreement Letter was signed by PT PHP representative (Rudi Hartono) and CV Khairannie representative (Hendro Susilo). According to Clause 5 in term of Manpower, the second party (CV. Khairannie) was obliged for complying the manpower regulation (Statue Number 13 Year 2003) including the payment of workers wage and etc.

According to the interview with Local Contractor of CV Salsabila (PT GMP), CV Karya Anak Nagari (PT GMP) and CV Khairani (PT PHP), the cooperation were profitable for each party. Company requires the contractor to comply the applied regulation. For example, PPE usage and employees salary implementation.

Status: Comply

6.6 The employer respects the right of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel.

Company has policy in form of Memorandum Intern No. 026/WIP-HRD/Int-VIII/2009 which was legalized by the Head of HRD, Memed Kosasih on August 12th 2009. It was describing that company ensure the employee to form and become the member of Labour Union refer to the applied regulation. PT. GMP Company has policy to Labour Union Recognition written on the document of Collective Labour Agreement for period of 2015 – 2016 which was signed by Restiato Adjie (Head of HRD), PUK of PHP Labour Union (Mawardi-Head of Labour Union, Osnadi-Secretary of Labour Union) on January 7th 2013. It was witnessed by the Head of West Pasaman District Manpower, Social, And Transmigration Agency (Aliman Afni SH). PT. PHP Peru Company has policy to Labour Union Recognition written on the document of Collective Labour Agreement for period of 2015 – 2016 on clause 7 which was signed by Restiato Adjie (Head of HRD), PHP Labour Union (Narsiwal-Head of Labour Union, Dagi Kaswara-Secretary of Labour Union) on January 7th 2013. It was witnessed by the Head of West Pasaman District Manpower, Social, And Transmigration Agency (Aliman Afni SH) PT GMP Company has record of assembly between company and Labour Union in PT GMP workshop on December 10th 2014. It was discussing the socialization of Labour Union board structure which was attended by 34 employees and the board of Labour Union. The record is supported with the photograph of socialization.




PT PHP Company has record of assembly between company and Labour Union in PT PHP building on December 15th 2014. It was discussing the socialization of Labour Union board structure which was attended by 69 employees. The record is supported with the photograph of socialization.

Status: Comply

6.7 Children are not employed or exploited. Work by children is acceptable on family farms, under adult supervision, and when not interfering with education program. Children are not exposed to hazardous working conditions.

Company has policy in term of underage workers which was signed by the Head of Plantation Group and the Head of CSR Group on September 2010. According to the result of observation over document of PT GMP and PT PHP employees list, interview and field observation, no underage workers found hired by company.

Status: Comply

6.8 Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age, is prohibited.

Company has policy in term of equal job opportunity, it was signed by the Head of Plantation Group and the Head of CSR Group on September 2010. According to the policy, company shall not discriminate the employees refer to gender, race/ethnic, disability, sexual orientation, ages nor religion. It was also written on PT GMP-PHP Collective Labour Agreement clause 12 in term of system and procedure of employees hiring regulated by Company Management Decree in term of discrimination over disable employees and people with HIV and AIDS refer to the Manpower Statue Number 13 Year 2003. According to the observation result over the document of PT GMP and PT PHP employees list, interview with hazardous waste officer, warehouse clerk, Land Application clerk, WWTP clerk, and West Pasaman District Manpower, Social, and Transmigration Agency, company has implemented equal treatment for the community to get job opportunity. It can be seen from the diversity over tribes, religion, and gender of the workers working in company.

- Minangese 269 people (0.46 %), Javanese 57 people (0.10 %), Bataknese 65 people (0.11 %), Bugis 1 person (0.01 %) and Nias 202 (0.34 %)

- Islam 338 people (0.65 %), Christian 208 people (0.35 %) - Men 446 people (0.75 %), Women 150 people (0.25 %)

Status: Comply

6.9 Policy to prevent sexual harassment and all other forms of violence against women and to protect their reproductive rights is developed and applied.

Company has policy in term of equal job opportunity, it was signed by the Head of Plantation Group and the Head of CSR Group on September 2010. According to the policy, company shall not justify the employee’s sexual orientation and shall prevent the violation over women. Company has also policy in form of Memorandum Intern No. 026/WIP-HRD/Int-VIII/2009 which was legalized by the Head of HRD on August 12th 2009. It is describing that the entire employees must maintain the ethic code and security in workplace and prohibit the sexual harasshment over women and pregnant women to work. Furthermore, company has had the draft of PT GMP-PHP Collective Labour Agreement for period of 2013 to 2015 on clause 28 in term of specific leave for women workers. According to the result of PT GMP and PT PHP complaint document observation, there was no complaint in term of sexual harasshment. It was supported by the result of interview with West Pasaman District Manpower and Transmigration Agency and the report from the stakeholder. As for the implementation of sexual harasshment prevention, company has formed women committee. The function and objective of women committee was to ensure the safety work environment and protect women workers for any kind of sexual harasshment and also to evaluate the complaint informed by women workers. The company has socialized women committee, sexual harasshment and violation handling in PT GMP on December 2nd 2014 and in PT PHP in November 29th 2014. There was also socialization attendance list signed by Estate Manager and Mill Manager.




PT GMP has information letter in term of childbirth leave on behalf Yuliana, age 26 years old, leave for 3 months (December 9th 2014 to March 8th 2015). The letter was issued by Policlinic Doctor on December 9th 2014. PT PHP has information letter in term of childbirth leave on behalf Meri (Manuring), age 32 years old, leave for 3 months (February 11th 2014 to May 11th 2015). The letter was issued by Policlinic Doctor on February 10th 2014. Company has procedure to accommodate the complaint No. PRO-HRD-005 (revision 00), valid since October 1st 2011 which was legalized by GEM. The policy of complaint resolution was also written onf PT GMP-PHP Collective Labour Agreement for period of 2013 – 2015. According to th result of interview, the officers have aware of the complaint delivery procedure for employees. PT GMP has recorded each employees complaint and its response on the form of complaint accommodation record. There were 2 company-responded complaints for period of 2014:

- Complaint delivered by Rohanti (Weighbridge Operator) in term of the Contract Driver’ Foul Mouthed on September 15th 2014. Company has respond it by coordinating with the manager and Heavy Equipment PIC along with the Contractor on September 22nd 2014.

- Complaint delivered by Umar (Store) in term of Work Procedure on October 16th 2014. Company has responded it by holding meeting with managers on October 22nd 2014.

PT PHP has recorded the workers complaint and its response on the form of complaint receipt record. There was 1 company-responded complaint for period of 2014 which was:

- Complaint delivered by Erni Yusnita (Nursery Maintenance) in term of good housing complex (no leakage and good water provision) type G6. It has been responded by company on October 14th 2014 by providing housing complex type G10.

Status: Comply

6.10 Growers and mills deal fairly and transparently with smallholders and other local businesses.

Company has Document of FFB Pricing for West Pasaman District on December 2014 (No.521.3/1563/PPH.2/XII-2014), which was determined by West Sumatera Province Plantation Agency on December 7th 2014. The FFB price was determined by referring to the assembly attended by company representative, cooperative unit board and Plantation Agency. There was also Official Record of FFB Pricing on November 2014 in Pasaman District, it was signed by company representatives, cooperative unit board, and Plantation Agency. There was evidence of cooperative agreement letter between company with smallholders and other contractors. The obligation and rights of each party was written on the cooperative agreement letter. For example procedure of payment and compliance over manpower regulation. Example of cooperative agreement letter: a. Smallholders

1. Cooperative Agrement Letter between PT PHP with Rantau Pasaman Village Cooperative Unit (Sasak Village Vooperative Unit) for the Establishment and Management of Estate with Scheme Smallholders System in Pasaman Sub-District, West Sumatera Province, Number 090/PHP-DIR/PK-III/97 & 004/KUD-SASAK/III/97 Dated March 15th 1997.

2. Cooperative Agrement Letter between PT PHP with Kapar Dalam Village Cooperative Unit for the Establishment and Management of Estate with Scheme Smallholders System in Pasaman Sub-District, West Sumatera Province, Number 020/PHP-DIR/PK-III/97 & 03/KUD-KAPAR/III/97, Dated March 15th 1997.

b. Local Contractor and its payment. PT. GMP

Cooperative Agrement Letter between PT GMP with CV Karya Anak Nagari for constructing employees housing complex type G10 (No.068/SPK/GMP/X/2014) dated October 15th 2014. The Cooperative Agreement Letter was signed by PT GMP representative (Ir. Sutanto) and CV. Karya Anak Nagari representative (Jhoni Kurnia).

There was evidence of payment transfer via Bank of Nagari Simpang Empat to CV. Karya Anak Nagari for IDR 424,933,752 dated January 8th 2014 as written on Cooperative Agreement Letter (No.068/SPK/GMP/X/2014) for housing complex type G10 construction.




PT. PHP

Cooperative Agrement Letter between PT PHP with CV Khairannie for purchasing gravels (No.132/SPK/PHP2/X/20140) dated October 30th 2014. The Cooperative Agreement Letter was signed by PT PHP representative (Rudi Hartono) and CV Khairannie representative (Hendro Susilo).

There was evidence of payment transfer via Bank of Nagari Simpang Empat to CV. Khairannie for IDR 5,375,050 dated October 30th 2014 as written on Cooperative Agreement Letter (No.132/SPK/PHP2/X/20140) for gravel purchasing.

Status: Comply

6.11 Growers and millers contribute to local sustainable development wherever appropriate.

Record of company contribution over regional development. For example: PT. GMP

Realization of CD/CSR for period of 2014 for IDR 70,079,000, which consisted of the assistance of seed, infrastructure, guidance of traditional art.

Property Tax paid via Bank of Nagari Simpang Empat for IDR 762,216,000 dated October 15th 2014.

Vehicle Tax. For example: Vehicle Police Number BA 9938 SJ was the tax paid for IDR 4,500,000.

Excavation Tax C paid via Bank of Nagari Simpang Empat, for IDR 4,314,510 dated July 24th 2014. PT. PHP II

Realization of CD/CSR for period of 2014 for IDR 201,020,500, which consisted of the assistance of seed, infrastructure, guidance of traditional art.

Property Tax paid via Bank of Nagari Simpang Empat for IDR 395,150,842 dated October 15th 2014.

Status: Comply

PRINCIPLE #7 Responsible development of new plantings

7.1 A comprehensive and participatory independent social and environmental assessment is undertaken prior to establishing new plantings or operations, or expanding existing ones, and the results incorporated into planning, management and operations.

Company did not conduct new development after November 2005

Status: Comply

7.2 Soil surveys and topographic information are used for site planning in the establishment of new plantings, and the results are incorporated into plans and operations.


Status: Comply

7.3 New plantings since November 2005, have not replaced primary forest or any area required to maintain or enhance one or more High Conservation Values.

There was no new development conducted since 2007 and according to the result of HCV Identification document verification within PT GMP & PT PHP estate area conducted by Consultant of Aksenta, no planting conducted within primary forest area and HCV area.

Status: Comply

7.4 Extensive planting on steep terrain, and/or on marginal and fragile soils, is avoided.


Status: Comply




7.5 No new plantings are established on local peoples’ land without their free, prior and informed consent, dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.


Status: Comply

7.6 Local people are compensated for any agreed land acquisitions and relinquishment of rights, subject to their free, prior and informed consent and negotiated agreements.


Status: Comply

7.7 Use of fire in the preparation of new plantings is avoided other than in specific situations, as identified in the ASEAN guidelines or other regional best practice.

Company did not conduct new development after November 2005.

Status: Comply

PRINCIPLE #8 Commitment to continuous improvement in key areas of activity

8.1 Growers and millers regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations.

Company commitment in Environment Aspect were:

Company has managed and evaluated the environment which was recorded on the implementation of Environmental Mangement and Monitoring Plan in 2nd semester 2014 such as Testing Effluent Quality, Testing Air Emission (Boiler), Testing Air Emission (Generator), Testing Ambient Air Quality, Testing Noise Quality.

Company has reported Environmental Management and Monitoring Plan in period of 2nd semester 2014 to West Pasaman District Environmental Agency on January 16th 2014.

Company has utilize effluent for land application and stored hazardous waste on the licensed hazardous waste storage and also planning Methane Capture as an attempt to reduce GHG.

Status: Comply




3.2. Summary of Assessment Report of Supply Chain Requirement

Clause (Module E) CPO Mills - Mass Balance Requirements

1 Documented Procedures

1.1

The facility shall have written procedures and/or work instructions to ensure the implementation of all the elements specified in these requirements. This shall include at minimum the following:

a) Complete and up to date procedures covering the implementation of all the elements in these requirements.

b) The name of the person having overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements. This person shall be able to demonstrate awareness of the facilities procedures for the implementation of this standard.

GMP POM has had SOP in term of supply chain implementation at mill. For example: a. FFB Receipt Procedure (PRO-MIL-001) which was valid since December 23rd 2013.

The Procedure covers: - Objective: Ensuring the FFB received has requirements of RSPO, ISCC, and other certification ascosiated with

“traceability” and report of GHG emission whether from company’s estate or outgrower. - Scope: The SOP is valid within PT GMP Mill area.

Officers in charge of the procedure are: - Security Officer: Recording entire FFB expedition and CPO / CSPO dispatch. - Weightbridge Operator (weightbridge): Weighing entire of the received FFB and the dispatched product and

identifying the certified or non-certified product. - Logistic: Calculating production output, dispatch, production output report, report of dispatch and CSPO / CPO

traceability. - Sorting Officer Conducting FFB grading, ensuring sortation report and placement of the received FFB. - Head of Administration Controling FFB and CSPO / CPO and CSPK / PK receipt, FFB receipt report, dispatch,

CPO dispatch report and traceability report. - Mill Manager : Ensuring entire processing stage.

b. Standard Operating Procedure of Mass Balance (SOP-MIL-023), which was valid since Deember 23rd 2013. The

procedure covers: - Objective: Ensuring accuracy of the certified and non-certified CPO / PK stock balance data. - Scope: The SOP is ascosiated with dispatch and stock arrangement and CPO / PK dispatch in PT GMP POM.

Officers in charge of the procedure are: - Logistic: Inputing the certified and non-certified FFB and responsible to maintain CPO / PK balance when

dispatching. - Mill Manager Monitoring the CPO / PK stock and dispatch run well.

c. CPO and PK dispatch procedure (PRO-MIL-004)

The Procedure covers: - Objective: As reference for the officers in charge on dispatching mill production output including the quality. - Scope: Valid for entire dispatches of PT GMP POM production output.

According to the interview and monitoring at Weighbridge Post:

Security officer of Weighbridge Post : They have aware of the procedure including separating the daily record for the incoming FFB from the certified estate (nucleus estate) and non-certified estate (scheme smallholders and independent smallholders). There are several supporting information such as: a. Vehicle Police Number of the FFB transporting vehicle




b. Driver’s Name c. Seal d. Date of the coming to weighbridge post e. Date of the exiting weighbridge post f. Nett g. Information (Supplier’s Name)

Mill administration staff (document controller) has shown the form of FFB covering letter, Weighbridge Ticket and Official Record of FFB sorting (grading) which was separating the certified FFB and non-certified FFB. Example of FFB Covering Letter on January 22nd 2015: a. FFB Covering Letter from PT GMP : Number 2012060316 (Phase I), Vehicle Police Number: BA 8003 SA;

Driver: Herman; FFB quantity 264 FFB; weight estimation: 4,600 Kg (estate weighing).

b. FFB Covering Letter from Rinbo Jandung Scheme Smallholder: Number 9510; Vehicle Police Number: BA 9098

GB; Driver: Abir; Quantity: 460 FFB; loosen fruit picking: 41 Kg.

Head of Mill Administration has described the procedures ascosiated with supply chain system implementation.

Status: Comply

1.2

The facility shall have documented procedures for receiving and processing certified and non-certified FFBs.

PT Gersindo Minang Plantation POM has Procedure of Mass Balance (SOP-MIL-023) which describes the documentation of the certified and non-certified FFB processing. FFB Receipt:

Date Wilmar FFB Outsider FFB FFB Received (KGS) % 1 2 3 4 5 6 7 8 9 10

Inti Today Todate Today Todate Outsider

Today Todate Today Todate

1/1/2014

293,628

293,628

293,628

100 100 - - - - -

2/1/2014

416,792

416,792

656,420

98 99 7,648 7,648 7,648 2 1

Information:

Coloumn 1,2,3 and 6,7,8 : data input from logistic

Coloumn 4 and 9 : Received FFB Total of the Received FFB x 100

Input of the processed FFB and the output of CPO:

Date Total FFB Received Processed FFB (KGS) OER (%) CPO Production (KGS)

11 12 13 14 15 16 17 18

Today Todate Today Todate Today Todate Today Todate

1/1/2014 293,628 293,628 328,180 328,180 100 22,66 74,380 74,380

2/1/2014 416,440 664,068 - 328,180 - 22,66 - 74,380

Information:

Coloumn 11 : Certified FFB + Non-Certified FFB

Coloumn 13 : Date input from the processed FFB refer to Production Supervisor report

Coloumn 15 : CPO Production x 100 Processed FFB

Coloumn 17 : Date input from sounding output

Status: Comply




2 Purchasing and goods in

2.1

The facility shall verify and document the volumes of certified and non-certified FFBs received.

According to SOP of GM POM Mass Balance, the procedure of inputing certified and non-certified FFB was described. For example:

Date Wilmar FFB Outsider FFB

FFB Received (KGS) %

1 2 3 4 5 6 7 8 9 10

Inti Today Todate Today Todate Outsider

Today Todate Today Todate

1/1/2014

293,628

293,628

293,628

100 100 - - - - -

2/1/2014

416,792

416,792

656,420

98 99 7,648 7,648 7,648 2 1

There was also example of FFB receipt in form of Official Records and Weighbridge Ticket from PT GMP Estate (Certified FFB) and Rimbo Jandung Scheme Smallholder (Non-Certified FFB) on January 22nd 2015. There were also information such as Total of Bunch, Average Weight, Total Reject and FFB Type (big or small).

Status: Comply

2.2

The facility shall inform the CB immediately if there is a projected overproduction.

According to the document of SOP of Mass Balance (SOP-MIL-023) on point 7.0 GENERAL TERM, point 7.1, when the certified CPO and PK production exceed the production projection refer to the certification body verification as written on SCCS certificate, then PT GMP shall inform the situation via email attached with the estimation of the exceeding production, period of the event (exceeding production) and the excuses of the production excees causes. According to the Products Daily and Monthly Movement Summary Report of PT Gersindo Minang Plantation Palm Oil Mill untill December 2014, CPO and PK data were CPO = 13,894.01 Ton and PK= 3,917.46 Ton. The total of production was not exceeding the production projection yet which was; CPO = 29,535.8 Ton and PK = 7,383.95 Ton. Reduction of GMP POM CPO production was caused by the FFB from PHP I was dispatched to the other mill within same group during period of April to September 2014.

Status: Comply

3 Record keeping

3.1

The facility shall maintain accurate, complete, up-to-date and accessible records and reports covering all aspects of these requirements.

According to the Document of RECORD MAINTAINING (PRO-GEN-002) Point 7.0 GENERAL TERM, PT GMP management has determined the record maintaining period. For example:

7 years for documents ascosiated with system, quality management, Environment OHS and RSPO, ISCC

10 years for documents ascosiated with taxation.

Status: Comply

3.2 Retention times for all records and reports shall be at least five (5) years.

According to the Document of RECORD MAINTAINING (PRO-GEN-002) Point 7.0 GENERAL TERM, PT GMP management has determined the record maintaining period. For example:

7 years for documents ascosiated with system, quality management, Environment OHS and RSPO, ISCC For example: Weighbridge Ticket, Journal of Press Digester

10 years for documents ascosiated with taxation




For example: Form of Petty Cash Request Recapitulation

Status: Comply

3.3 (a) The facility shall record and balance all receipts of RSPO certified FFB and deliveries of RSPO certified CPO, PKO and

palm kernel meal on a three-monthly basis. (b) All volumes of palm oil and palm kernel oil that are delivered are deducted from the material accounting system

according to conversion ratios stated by RSPO. (c) The facility can only deliver Mass Balance sales from a positive stock. However, a facility is allowed to sell short.

During period of the post RSPO Certificate Achievement untill Surveillance 1, there was no transaction of the certified product. There was example of FFB receipt, FFB process, and CPO production. Input of the processed FFB and the output of CPO:

Date Total FFB Received Processed FFB (KGS) OER (%) CPO Production (KGS)

11 12 13 14 15 16 17 18

Today Todate Today Todate Today Todate Today Todate

1/1/2014 293,628 293,628 328,180 328,180 100 22,66 74,380 74,380

2/1/2014 416,440 664,068 - 328,180 - 22,66 - 74,380

Status: Comply

3.4 The following trade names should be used and specified in relevant documents, e.g. purchase and sales contracts, e.g. *product name*/MB or Mass Balance. The supply chain model used should be clearly indicated.

According to the SOP of Mass Balance (SOP-MIL-023), which was valid since December 23rd 2013, the Supply Chain Model applied by MSM POM was Mass Balance (MB). During period of the post RSPO Certificate Achievement untill Surveillance 1, there was no transaction of the certified product in Gersindo POM.

Status: Comply

3.5 In cases where a mill outsources activities to an independent palm kernel crush, the crush still falls under the responsibility of the mill and does not need to be separately certified. The mill has to ensure that the crush is covered through a signed and enforceable agreement.

Company does not cooperate with contractor for managing palm kernel

Status: Not Applicable

4 Sales and goods out

4.1

The facility shall ensure that all sales invoices issued for RSPO palm oil delivered include the following information:

(a) The name and address of the buyer

(b) The date on which the invoice was issued

(c) A description of the product, including the applicable supply chain model (Segregated or Mass Balance)

(d) The quantity of the product delivered

(e) Reference to related transport documentation

PT GMP POM has not yet receiving request nor has not yet selling RSPO certified product untill Surveillance 1.

Status: Not Applicable

5 Training

5.1

The facility shell specifies and provides the training for all staff as required to implement the requirements of the Supply




Chain Certification Systems.

Company has not yet show the evidence of training post the RSPO certificate achievement for entire staff refer to the obligation of the implementation of Supply Chain Certification System Requirements. Status: Non compliance 2015.01 February 16th 2015 Root Cause : PT GMP has not yet aware of the RSPO – SCCS requirements in term of obligation to hold training for the staff. Corrective Action : Company must hold training for the ascosiated officers, specifically whose position relevant with RSPO – SCCS Preventive Action : Company must Identify and ensure that entire officers ascosiated has been trained with any of certification system implemented in PT GMP. Auditor Conclusion : Company has shown the record of SCCS training purposed to the ascosiated officers which was held by Sustainability Team of Jakarta Head Office on February 10th 2015. Record Evidence were in form of Official Record, Attendance List, and Training Photograph. Therefore, NC was then considered closed.

Status: Comply

6 Claims

6.1 The facility shall only make claims regarding the use of or support of RSPO certified oil palm products that are in compliance with the RSPO Rules for Communications and Claims.

Claim of RSPO certified palm oil product usage by PT Gersindo Minang Plantation was described on SOP-MIL-031, Chapter 6.0 DESRIPTION OF STANDARD OPERATING PROCEDURE, Point 1. Which was stating that PT Gersindo Minang Plantation was referring to Rules on Market Communication and Claims.

Status: Comply




3.3. Conformity Checklist of Certificate and Logo Use

1. Evidence of permission or approval certificate and logo from Certification Body which submitted by Client

X or√

ASA-01 PT Gersindo Minang Plantation / PT Permata Hijau Pasaman has had permits of certificate usage with number MUTU-RSPO/038.

√

Status: Comply

2. Implementation of certificate and logo used by Client comply with size and type (shape) against Guideline of Logo Use

X or√

ASA-01 Not Applicable; Company does not use logo on product (on-product) and not on product (off-product) within PT Gersindo Minang Plantation / PT Permata Hijau Pasaman area.

√

Status: Comply

3. Implementation of Certificate and Logo is not used on product

X or√

ASA-01 Not Applicable; Peru Company does not use logo on product (on-product) and not on product (off-product) within PT Gersindo Minang Plantation / PT Permata Hijau Pasaman area.

√

Status: Comply

4. Controlling of Certificate and Logo, including withdrawing inappropriate logo.

X or√

ASA-01 Not Applicable; Peru Company does not use logo on product (on-product) and not on product (off-product) within PT Gersindo Minang Plantation / PT Permata Hijau Pasaman area.

√

Status: Comply




3.4. Summary of RSPO Partial Certification.

Total companies observed (0.5 √Y) Where Y is the total of uncertified RSPO registered company The Management Unit name :

PT Daya Labuhan Indah

PT Buluh Cawang Plantations Date of Observation: April 1th - 7th 2013 and April 22th - 26th 2013

2.1

There is compliance with all applicable local, national and ratified international laws and regulations.

X or√

Based on results of verification in 2 units as an examples of the assessment, company has complied with the regulation.

√

Status: Complied

2.2

The right to use the land can be demonstrated, and is not legitimately contested by local communities with demonstrable rights.

X or√

Based on documents verification there is available legal documents of land use right and there is no land conflict in each sample units.

√

Status: Complied

6.3

There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties.

X or√

There is available several procedure :

Standard Operational Procedure of Communication, Consultation and Coordination (No. PRO-BM.BEN-001)

Standard Operational Procedure of Land Acquisition (No. SOP-IJIN LAHAN&OPS-006)

Standard Operational Procedure of Conflict Resolution Mechanism (No. PRO-BNM-004)

These procedures was implemented and already socialization to stakeholder.

√

Status: Complied

6.4

Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.

X or√

Based on verification is available evident of land acquisition and compensation in each management unit. These process was documented and the document is signed by all parties related on compensation process.

√

Status: Complied

7.3

New plantings since November 2005, have not replaced primary forest or any area required to maintain or enhance one or more High Conservation Values.

X or√

Based on verification there is not primary forest replaced and the management unit is still on process to identification the High Conservation Value Area.

√

Status: Complied

7.5

No new plantings are established on local peoples’ land without their free, prior and informed consent, dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.

X or√

There is no new plantings √

Status: Complied

7.6

Local people are compensated for any agreed land acquisitions and relinquishment of rights, subject to their free, prior and informed consent and negotiated agreements.

X or√

There is no new plantings √

Status: Complied




3.5 Identification of Findings, Corrective Action, Observations, Opportunity for Improvement and Noteworthy Positive Components.

3.5.1.1 Finding Identification, Corrective Action and Observation during ST-2 Assessment

NCR No

Ref Std Finding Area Grade Deadli

ne Corrective Action Observation Status

Date Closed

- - During ASA-1, PT GMP and PT PHP has shown well-implemented RSPO standard. Therefore, no NC found.

- - - - - - -

3.5.1.2 Finding Identification, Corrective Action and Observation during ASA-1 Assessment

NCR No

Ref Std Finding Area Grade Deadline Corrective Action Observation Status Date

Closed

2015.01

SCCS 5.1

Training

Company has not yet show the evidence of training post the RSPO certificate achievement for entire staff refer to the obligation of the implementation of Supply Chain Certification System Requirements.

POM Major February 21st 2015

Company must be able to show the evidence of training held for entire staff in order to implement Supply Chain Certification System Requirements.

February 16th 2015 Root Cause : PT GMP has not yet aware of the RSPO – SCCS requirements in term of obligation to hold training for the staff. Corrective Action : Company must hold training for the ascosiated officers, specifically whose position relevant with RSPO – SCCS Preventive Action : Company must identify and ensure that entire officers ascosiated has been trained with any of certification system implemented in PT GMP. Auditor Conclusion : Company has shown the record of SCCS

Closed February 20th 2015




NCR No

Ref Std Finding Area Grade Deadline Corrective Action Observation Status Date

Closed training purposed to the ascosiated officers which was held by Sustainability Team of Jakarta Head Office on February 10th 2015. Record Evidence were in form of Official Record, Attendance List, and Training Photograph. Therefore, NC was then considered closed.

3.5.1.3 Opportunity for Improvement / Opportunity for Improvement during ASA-1 Assessment

No Ref Std Descriptions

1

Major 4.7.2

Follow up of the changes on Letter of Appointment of OHS Expert of PT GMP OHS Guiding Committee Secretary.

3.5.1.4 Opportunity for Improvement / Opportunity for Improvement during ASA-1 Assessment

No Ref Std Descriptions

1. Company commitment to implement sustainable palm oil principle

2. Personnel (Staff) competence refer to their position.

3. Company has achieved RSPO and ISPO.

4. Company has implemented Smallholders Program.




3.6 Summary of Arising Issues from Public, Management and Auditor Response

Issues from Public (Institusi / LSM / Masyarakat)

Manajemen Response Auditor Response

West Pasaman District Environment Agency (Head of Environmental Review and Monitoring Division)

Company has had environment document (EIA and Environmental Management and Monitoring Plan) legalized by West Pasaman Regent.

Company has had hazardous waste storage located in PT GMP POM, Estate and PHP-1 Estate and it has been legalized by West Pasaman Regent.

Company has Land Application permit legalized by West Pasaman Regent.

Company has reported the result of mill effluent quality test each quarter.

Company has reported the hazardous waste management (balance sheet and manifest) each quarter.

Company has reported the result of air quality test (emission and ambient) per semester.

Company has reported the result of disturbance level threshold generated by non-moving source per semester.

Company has reported document of Environmental Management and Monitoring Plan implementation per semester.

Company has reported the result of soil quality test over land application annualy.

Company has quickly respond the information request requested by Environment Agency.

No reports and issues in term of negative effect caused by PT GMP and PT PHP Estate and Mill Operational from the other parties.

PT GMP & PHP have committed to comply the applied regulations and statues.

According to document verification and stakeholder consultation, PT GMP & PT PHP have complied the regulation in term of environment management.

PT GMP & PT PHP have conducted the obligations in term of environment management such as Implementation of Environmental Management and Monitoring Plan, Effluent management report, and hazardous waste balance sheet report.

No issues in term of negative impact caused by estate and mill operational.






West Pasaman District Manpower, Social, and Transmigration Agency. (Division of Manpower and Head of Manpower Monitoring Division)

Company has implemented wage minimum standard for period of 2014 & 2015 refer to the applied regulation.

Company has provided proper housing complex facility.

Company has not yet registered entire of company’s workers to Labour Social Assurance Program.

Collective Labour Agreement for period of 2015 / 2016 was still on progress.

Obligation to report routinely has been informed by company. For example, report of OHS Guiding committee for each quarter and must-report obligation of manpower annually.

Company has reported OHS Guiding Committee routinely.

Company has had Labour Union (PT GMP and PHP Labour Union) and structural changes has been witnessed by Manpower and Transmigration Agency on January 2015.

Company has had Boiler and Generator permit and Boiler and Generator condition are well maintained.

Company quickly responding the information request requested by Manpower and Transmigration Agency.

There is no issues nor reports in term of underage workers hired by company and discrimination in company.

PT GMP & PHP must always attempt to provide the best for employees and staff welfare.

Company has registered entire of its workers to Pension Assurance Program (JHT), Death Assurance Program (JKM) and Work Accident Assurance under Manpower BPJS. Meanwhile, medical service insurance has been provided for supporting worker’s welfare. Membership of Medical BPJS has been activated since February 1st 2015.

Extension of Collective Labour Agreement of PT GMP and PT PHP for period of 2015 / 2016 has been legalized by the Head of West Pasaman Manpower, Transmigration, and Social Agency with Number KEP.04/PP-PKB/DSTK-TRAN/2015 dated January 5th 2015.

PT GMP and PT PHP has implemented the obligations in term of manpower such as OHS Guiding Committee Report, Must-report manpower Report and involving company workers to the Labour Social Assurance program.

There is no indication of underage workers hired by company and company’s discrimination.

There is no issues in term of manpower dispute.

West Pasaman District Plantation Agency (Production Division)

Company has reported the Plantation Business Development Report regularely.

Company has reported the Land Fire Prevention and

PT GMP & PHP have committed to comply the applied term, regulation, and statue and shall maintain good communication with entire stakeholders.

Company shall report the plantation business development routinely.

There is no issues and reports in term of negative impact over the environment caused by PT GMP






Management regularely.

Company has proper and complete land fire handling equipments.

Company has had Plantation Business Permit.

Plantation Business Assessment has been conducted on 2012 and has achieved Estate Class II for PT GMP and Estate Class III for PT PHP.

PT GMP & PT PHP management area is beyond the protected forest area.

PT GMP & PT PHP management area is beyond the Mining Complex.

Company has implemented scheme smallholders program.

Company is quickly responding the information request that is requested by Plantation Agency.

There is no issues and reports from other parties in term of negative impact to the environment caused by PT GMP and PHP Estate and Mill Operational.

and PHP Estate and Mill Operational.

West Pasaman District National Land Agency (Head of Land Right and Land Registeration Division)

Company has had location permit

Legality of PT GMP and PHP land acquisition has cleared and cleaned along with the issuance of Land Use Title certificate.

PT GMP & PT PHP management area is beyond the protected forest area.

PT GMP & PT PHP management area is beyond the Mining Complex.

Company is quickly responding the information request that is requested by National Land Agency.

PT GMP & PT PHP shall attempt to focus on company legality.

PT GMP and PT PHP have complied the regulation in term of land acquisition legality.

Complaint informed by the Head of Nagari Kapa Costum has been informed via RSPO Grivance Mechanism on October 30th 2014 and it has been followed up.

Company has shown Area Statement for period of 2015 (including PHP Unit I) along with the attachment of the Official Record of PHP I HA Area Statement Changes, No. 002/PF21/PHP/XII/2014, dated December 31st 2014 from 1,243.90 Ha to 1,247 Ha (for scheme smallholders área).






Sikilang Village Stakeholder consultation in the village is conducted via interview with the community figure and several villagers.

The main points of the positive impact caused by the establishment of PT GMP & PT PHP estate area refer to the result of interview are: - Opening of road access from and to Sikilang Village with the

places used to be only able to be accessed through Aur River and Sea.

- Opening Job opportunity for the village community nearby company refer to the competence they have.

- Assitance of company to support CSR program implementation. For example, operational assistance (printer) for Secondary School in the nearby village.

- Scheme Smallholders program has been implemented (± 800 member of the Head of Family and hectarage for ± 265 Ha).

- Assitance for providing heavy equipment to repair bridge at village.

Social interaction between village communities with the management of PT GMP & PT PHP havs been well running so far. Assistance request that was requested by the community via proposal purposed to company has been well responded.

There is no complaint expressed by nearby villages community in term of negative impact over environment caused by PT GMP & PT PHP Estate and Mill Operational.

There is no issues in term of land management conflict between company against the nearby community.

Aspiration: Assitance ro repair village road.

Company management has conducted CSR program (Maintenance Of Road) by providing heavy equipment on January 30th 2014 in Jorong Sikilang for +/- 5 Km of road maintenance.

Company management shall keep maintaining

good relation with Jorong Sikilang Community in order to create harmony.

CSR program will be adjusted with the community need by involving government and nearby community.

Company has given several assistance for the community via CSR program.

There is no issued in term of social conflict between village communities against the company.

There is no issues in term of negative impact caused estate and mill operational.






Tanjung Pangkal Village Stakeholder’s consultation in the village is conducted through process of interview with Community Figure (Datuk) and several villages’ community (including women). The main points of the interview result were:

Positive impact caused by PT GMP & PT PHP Estate establishment were: - Opening of job opportunity for the village community nearby

refer to the competence they have. - Scheme smallholder program has been implemented since

1998 (profit sharing: 40% for village and 60% for Company) and since 2015 for Lingkung Alur.

- Assistance provided by company were:

Road Repairment

Place of Worship Repairment

Islamic School Building Repairment

Routine hanging-bridge maintenance.

There is no complaint expressed by the local village community in term of negative impact over environment caused by estate and mill operational.

There is no issues in term of land management conflict between company against the nearby community.

Company management shall keep maintaining good relation with Jorong Pangka Community in order to create harmony

Company has given several assistance to the community via CSR program.

There is no issues in term of social conflict between the village communities against company.

There is no issues in term of negative impact caused by estate and mill management.

Representative of Kapa Community (Chief of Kapa Nagari Costum & Chief of Kapa Nagari Costum Kerapatan)

The land conflict in PHP 1 between Kapa costum communities has been discussed in Kuala Lumpur on November 19th 2014. All parties agree that the conflict will be authorized to be solved by National Land Agency and West Pasaman District Government.

According to the result of discussion in Kuala Lumpur, both parties shall cooperate for solution of the ongoing conflict.

Complaint from the Chief of Kapa Nagari Costum Kerapatan has been informed via RSPO Grivance Mechanism on October 30th 2014.

The complaint has been followed up with the assembly which was attended by Kapa Community Representative, Wilmar Representatives, and FPP representatives and it has been facilitated by

According to the document verification and consultation with the ascosiated parties, Complaint from the Chief of Kapa Nagari Costum Kerapatan has been informed via RSPO Grivance Mechanism on October 30th 2014 has been followed up via:

Meeting on November 19th 2014 between Representative of Kapa Community, Representative






There is no problem on the relation between company against the community and Kapa community is never prohibit PT PHP to keep operating.

344 Ha of area will be given to the Kapa community as scheme smallholder. The FFB from scheme smallholders will be supplied to Gersindo POM.

We are just dealing the land which has owning Land Use Title certificate and it is managed by PT PHP 1 since 1997.

We were sending letter to Ministry of Agraria, Head of National Land Agency, Office of National Land Agency and West Pasaman District National Land Agency on December 11th 2014. There is no response of the letter yet. It contains the demand over PT PHP Land Use Title.

RSPO in Kuala Lumpur. According to the assembly result the issue will be authorized to be solved by National Land Agency and West Pasaman District Government.

Wilmar Management shall followed up the issue by coordinating with West Sumatera Province National Land Agency on December 10th 2014. The points of the assembly were:

- Proposal of Land Use Title from PT PHP has been referring to the procedure applied by government.

- Issue in term of area boundary between Kapa community and Sasak community was an internal issue regardless the Land Use Title owned by PT PHP. Kapa and Sasak community figures have discussed since 1992 and they have authorized the land for the establishment of scheme smallholders for each tribes.

- Costumary land handover has been conducted in past refer to the applied regulation.

- The chief of costum can have the case handed over by the court if the case progress dissatisfying him.

of Wilmar, and Representative of FPP has been facilitated by RSPO in Kualalumpur. The conclusion of the meeting was the each party was agreeing for hand the issue to National Land Agency and West Pasaman Government.

Assembly in West Sumatera Province National Land Agency has been followed up on December 10th 2014.

Indonesia Complaint Coordinator which Represents RSPO Complaints Panel has issued Letter on March 10th 2014 to the Nagari Costumary Unity of Kapa, Luhak Nan Duo Sub-District, West Pasaman, West Sumatera, Indonesia Up: Alman Gampo Alam, SH, Pucuk Adat Nagari Kapa and Head of Kerapatan Adat Nagari Kapa.

Panel Committee has composed early decision as follows:

- Related to the Land Use Title Certificate. - Panel committee reviews that PT PHP has

complied the RSPO P & C Number 2 in term of Compliance of Law and Regulation.

- The land border between Nagari Kapa and Nagari Sasak Community shall be solved by both communities and the regional government.

- No further approval needed due to the land has been legally owned by regional government.

- Early acquisition was conducted by the local government and not by company. Therefore, the dispute in term of land acquisition should be informed to the regional government and the compensation must be proposed to the regional






administrative court.

Refer to the letter, panel committee request the community to respond the letter no later than March 24th 2015.

Auditor of PT Mutuagung has also has conducted interview with the Representative of Kapa Community (Pucuk Adat Nagari Kapa & Head of Kapa Nagari Unity) in term of the issue. According to the information, the Kapa community was never mess with PT PHP. The objection of pucuk adat was the Decree of the Head of Republic of Indonesia National Land Agency for granting Land Use Title Right on behalf PT Permata Hijau Pasaman.

Company has shown the Area Statement for period of 2015 (including PHP Unit I) along with the attachment of Official Record of PT PHP I Ha changes of área statement, Number. 002/PF21/PHP/XII/2014, dated December 31st 2014 from 1.243.90 Ha to 1.247 Ha (344 Ha was converted to Kapa Scheme Smallholders area).




4.0 CERTIFIED ORGANISATION'S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Sign-off of Assessment Findings

Hereunder sign by management representative from inspected company to acknowledge a field assessment and agree for all content explained in this assessment report, included of non-compliance findings.

Signed on behalf of:

Company Name

Mutuagung Lestari

Management Representative

Lead Auditor

Simon Siburat

Oktovianus Rusmin

Jumat, 20 Februari 2015

Jumat, 20 Februari 2015




No Institution/NGO/Community Address Phone/Email Form of

Communication Date of Contact

Response

Yes No

01 West Pasaman District Environment Agency. (Head of Environmental Review and Monitoring Division)

Pasaman Baru Villange, Pasaman Barat, Sumatera Barat Province.

- Direct

Consultation 20 Januari

2015

02 West Pasaman District Manpower, Social, and Transmigration Agency. (Division of Manpower and Head of Manpower Monitoring Division).


- Direct


2015

03 West Pasaman District Plantation Agency (Production Division).


- Direct


2015

04 West Pasaman District National Land Agency. (Head of Land Right and Land Registeration Division).


- Direct


2015

05 Community figure and several villagers (Sikilang).


- Direct


2015

06 Community figure and several tanjung pangka

Jorong Tanjung Pangkal, Pasaman Barat, Sumatera Barat Province.

- Direct


2015

07 Representative of Kapa Community (Chief of Kapa Nagari Costum & Chief of Kapa Nagari Costum Kerapatan)

Jorong Pangampe, Pasaman Barat District, Sumatera Barat Province.

-

Interview by phone

13 Maret 2015

08 NGOs (Sawit Watch, Walhi dan WWF Indonesia). - -

Latter and Quisioner by

Email

16 Januari 2015.

Appendix 1. List of Stakeholder Contacted in the RSPO Certification Process




Appendix 2. Assessment Program

Tanggal 19 s/d 24 January 2015

PROGRAM PROSES / HAL YANG DIAUDIT AUDITOR

OR MY SL SH DN

Monday, 19 January 2015

06.00-08.00

08.00-13.00

14.00-14.30

14.45 – 16.30

16.30 – 17.00

JAKARTA PADANG PADANG PT Gersindo Minang Plantation & PT Permata Hijau Pasaman Opening Meeting Review of Previous Visit Non-conformance (Stage-2) Confirmation/Preparation for Field Visit and Stakeholder Consultation

√ √ √ √ √

Tuesday, 20 January 2015

08.00 – 12.00 Field Observation in PT Permata Hijau Pasaman (Estate 2)

Stakeholder Consultation to Sikilang Villange

Manuring, Spraying, Harvesting (best agricultural practices)

Land Fire facilities, etc

Worker facilities (housing, health clinic, clean water, etc) and

Workers interview (Worker Rights: payments, complaint mechanism, etc)

Conservation Area, Environment Station Monitoring & Hazardous Waste Management

√

√ √

√

√ √

08.00 – 17.00

Public Consultation

√

12.00 – 14.00 Break

14.00 – 16.00

16.00 – 17.00

Check of Boundary Stone

Continuing of Field Observation

Field Observation Clarification

√ √ √

√ √

√ √

√ √

√ √

Wednesday , 21 January 2015

08.00 – 12.00 Field Observation in PT Gersindo Minang Plantation Estate

Manuring, Spraying, Harvesting (best agricultural practices)

Land Fire facilities, etc

Worker facilities (housing, health clinic, clean water, etc) and


Stakeholder Consultation to Village Adjacent of Plantation Area & Check of Boundary Stone

Conservation Area & Environment Station Monitoring

Hazardous Waste Management

√

√ √

√

√

√ √




12.00 – 14.00 BREAK √ √ √ √ √

14.00 – 16.00

16.00 – 17.00

Continuing of Field Observation

Field Observation Clarification √ √ √ √ √

Thursday, 22 January 2015

08.00 – 12.00 Field Observation in PT Gersindo POM

SCCS Verification


Land Application & Hazardous Waste Management/Hazardous Storage

Production Processing, Fire Protection & Emergency Team (Interview & Simulation)

Environment/EIA

√

√

√

√

√

12.00 – 14.00 BREAK √ √ √ √ √

14.00 – 15.30

15.30 – 17.00

Field Observation Clarification

Completing of Check List √ √ √ √ √

Friday, 23 January 2015

08.00 – 10.00.

10.00 – 12.00

Reconfirmation of data & Completing of Check List

Auditor Team Discussion (Preparation for Audit Conclusion) √ √ √ √ √

14.00 – 15.00

15.30 - 20.30

Closing Meeting

Travel from Plantation Area to Padang √ √ √ √ √

Saturday, 24 January 2015

09.00 – 11.00 PADANG JAKARTA √ √ √ √ √




Appendix 3. Glossary

AMDAL : Social and Environmental Impact Assessment

PPE : Personal Protection Equipment

ASEAN : Association of South East Asian Nations

AVP : Assisstant Vice President

B3 : Hazardous Material Waste

BOD : Biological Oxygen Demand

CEO : Chief Executive Officer

CPO : Crude Palm Oil

CBD : Convention on Biodiversity

GMP : Gersindo Minang Plantation

HCV : High Conservation Value

HGU : Land Use Permit

HIRARC : Hazard Identification Risk Assessment and Risk Control

POL : Plantation Operation Licence

WWTP : Waste Water Treatment Plant

JAMSOSTEK/SAL : Social Assurance of Labor

EFB : Empty Fruit Bunch

OHS : Occupational Health and safety

KER : Kernel Extarction Rate

LC : Land Clearing

MB : Mass Balance

NC : Non Comformance

OER : Oil Extarction Rate

P2K3 : Occupational Safety and Health Committee

PHP : Permata Hijau Pasaman

IPM : Integrated Pest Management

PK : Palm Kernel

POM : Palm Oil Mill

RKL/RPL : Environmental Management Plan/ Environment Monitoring Plan

SOP : Standart Operational and Procedure

ST 1 : Stage 1

ST 2 : Stage 2

TBS / FFB : Fresh Fruit Bunches

UKL/UPL : Environmental Management Efforts/ Environmental Monitoring Efforts

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